The Cool Million Corporation's plant manufactures two different products: X and Y . The plant has...
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The Cool Million Corporation's plant manufactures two different products: X and Y . The plant has three different machines: A, B, and C. Each performs different tasks and can work on only one unit of material at a time. Details for each product are shown in the table below: Product X Y Demand Per Week 200 units 100 units Selling Price $150 $160 Machine Operation Required A, B, C B, B, C Operation Times in Minutes 20, 15, 15 15, 15, 15 Raw Materials Needed RM-1, RM-2 RM-2, RM-3 Raw Materials costs RM-1 = $40/unit, RM-2 or RM-3 = $20/unit Each product uses raw materials with costs as shown in the above table where the process- ing times and the machine required for each operation are also shown. Each machine is available 4,800 minutes per week. There are no system foulups. Demand is deterministic (i. e., no uncertainty). Operating expenses, including labor (but excluding raw materials) total $12,000 per week. a. Assuming market is not a constraint, which machine (resource) is the constraint in this plant? Why? (5 points) b. With the machine (resource) identified as constraint in (a) above, what product mix provides the highest pro_t? How much is this maximum profit? (5 points) c. In order to exploit the constraint identified in (b) above, is market demand a con straint for maximizing profits? Why or why not? (3 points) d. Assuming market demand is a constraint, how much additional profit can be made by relaxing this constraint? Please justify your answer. (4 points) The Cool Million Corporation's plant manufactures two different products: X and Y . The plant has three different machines: A, B, and C. Each performs different tasks and can work on only one unit of material at a time. Details for each product are shown in the table below: Product X Y Demand Per Week 200 units 100 units Selling Price $150 $160 Machine Operation Required A, B, C B, B, C Operation Times in Minutes 20, 15, 15 15, 15, 15 Raw Materials Needed RM-1, RM-2 RM-2, RM-3 Raw Materials costs RM-1 = $40/unit, RM-2 or RM-3 = $20/unit Each product uses raw materials with costs as shown in the above table where the process- ing times and the machine required for each operation are also shown. Each machine is available 4,800 minutes per week. There are no system foulups. Demand is deterministic (i. e., no uncertainty). Operating expenses, including labor (but excluding raw materials) total $12,000 per week. a. Assuming market is not a constraint, which machine (resource) is the constraint in this plant? Why? (5 points) b. With the machine (resource) identified as constraint in (a) above, what product mix provides the highest pro_t? How much is this maximum profit? (5 points) c. In order to exploit the constraint identified in (b) above, is market demand a con straint for maximizing profits? Why or why not? (3 points) d. Assuming market demand is a constraint, how much additional profit can be made by relaxing this constraint? Please justify your answer. (4 points)
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