800 Lathe 480 Grinder 320 The salespeople estimate they can sell all the units

# 800 lathe 480 grinder 320 the salespeople estimate

This preview shows page 6 - 9 out of 10 pages.

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

#### You've reached the end of your free preview.

Want to read all 10 pages?

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

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern