800
Lathe
480
Grinder
320
The salespeople estimate they can sell all the units of X
1
and X
2
that can be made. But
the sales potential of X
3
is 80 units per week maximum. Unit profits for the three
products are
Unit Profits
X
1
$20
X
2
6
X
3
8
a)
Set up the equations that can be solved to maximize the profit per week.
b)
What is this situation with respect to the machine groups? Would they work at
capacity, or would there be unused available time? Will X
3
be at maximum sales
capacity?
c)
Suppose that an additional 200 hours per week can be obtained from the milling
machines by working overtime. The incremental cost would be $1.5 per hour.
Would you recommend doing this? Explain how you arrived at your answer.

6.
Resistors for electronic circuits are manufactured on a high-speed automated machine.
The machine is set up to produce a large run of resistors of 1,000 ohms each. To set up
the machine and to create a control chart to be used throughout the run, 15 samples were
taken with four resistors in each sample. The complete list of samples and their measured
values are as follows:
Readings (In Ohms)
Sample
Number
X1
X2
X3
X4
1
1010
991
985
986
2
995
996
1009
994
3
990
1003
1015
1008
4
1015
1020
1009
998
5
1013
1019
1005
993
6
994
1001
994
1005
7
989
992
982
1020
8
1001
986
996
996
9
1006
989
1005
1007
10
992
1007
1006
979
11
996
1006
997
989
12
1019
996
991
1011
13
981
991
989
1003
14
999
993
988
984
15
1013
1002
1005
992
Develop an x-bar chart (Use three-sigma control limits) and plot the values. From the
charts, what comments can you make about the process? (Remark: after you
construct the control limits using the existing data, if there are any points outside the
control limits, we don’t need to reconstruct the control limits again for this case.)

7.
The state and local police departments are trying to analyze crime rates so they can shift
their patrols from decreasing-rate areas to areas where rates are increasing. The city and
county have been geographically segmented into areas containing 5,000 residences. The

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- Spring '17
- wert
- Control Chart, ISOM, small facility