Swarthy Environmental Solution - Swarthy Snow Industries...

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Swarthy Snow Industries: Eco training to reduce wood Final Objectiv e Allowable Allowable Name Value Coefficie nt Increase Decrease Production S1 3,000.00 191.60 Infinity 54.13 Production S2 699.10 314.80 123.95 314.80 Production S3 1,500.00 108.50 Infinity 36.46 Final Shadow Constrai nt Allowable Allowable Name Value Price R.H. Side Increase Decrease S1 Demand 3,000.00 54.13 3,000.00 312.26 231.05 S2 Demand 699.10 - 800.00 Infinity 100.90 S3 Demand 1,500.00 36.46 1,500.00 337.51 440.93 Labour (hours) used 55,000.00 13.46 55,000.0 0 2,359.00 16,345.00 Wood (meters) used 9,648.20 - 10,000.0 0 Infinity 351.80 As an environmentalist you are concerned about the use of wood. You have arranged training sessions (no out of pocket charge to Swarthy) which would reduce the wood used by 10%. Each of the 17 employees of Swarthy will need to spend 40 hours of their existing time at the training. During this time the employees will be paid their regular pay.
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As the management of Swarthy do you want to accept this proposal? The benefit of this proposal is to use less wood. In this circumstance the savings is #9,648)(.1) – 964.8 KG of wood. The printout indicates that the allowable decrease is only 351.80. This figure pertains to the
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