Question 1: A manufacturer produces two products, A and B,
and is trying to work out his production schedule for the next
two months. He currently has on hand 1,000 units of A and
800 units of B and estimates sales over the period as shown
in the following table: Estimated Sales, Units/Months |
2,000
3,000 4,000 3,000 Regular Shift Production Cost, $10 $/Unit
$6 If the production facilities were devoted entirely to
producing product A, they could turn out a maximum of
4,000 units/month on regular shift operation and up to 1,000
units/month additional on overtime operation. Similarly, if
only product B was produced, regular shift capacity would be
6,000 units/month with 2.000 units/months additional
available from overtime operation. The production facilities
can be devoted to any proportions of products A and B
.....
1,000 units of A (-1/4 capacity) plus 4,500 units of B (= 3/4
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- Fall '19
