The M-N plant manufactures two different products: M and N. Selling prices and weekly market demands...

  

Transcribed Image Text:

The M-N plant manufactures two different products: M and N. Selling prices and weekly market demands are shown in the following diagram. Each product uses raw materials with costs as shown. 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. Resources: A, B, C (one each) Availability: 3,800 min./week Operating expense: $12,000/week Product M $190/unit 120 units/week 15 min./unit 20 min./unit RM-1 $60/unit Product N $200/unit 80 units/week 15 min /unit B 10 min./unit RM-2 $40/unit 10 min./unit RM-3 $40/unit Process times for each task are shown in the diagram. Each machine is available 3,800 minutes per week. There are no "Murphys" (major opportunities for the system to foul up). Setup and transfer times are zero. Demand is constant. Operating expenses (including labor) total a constant $12,000 per week. Raw materials are not included in weekly operating expenses. a. Which machine is the constraint in this plant? Machine A Machine C Machine B b. Which product mix provides the highest gross profit? (Hint: consider raw material cost but not operating expense) Product M Product N Product mix units units c. What is the maximum weekly net profit this plant can earn using the product mix from Part b? (Hint: consider operating expense and raw material cost) Weekly net profit The M-N plant manufactures two different products: M and N. Selling prices and weekly market demands are shown in the following diagram. Each product uses raw materials with costs as shown. 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. Resources: A, B, C (one each) Availability: 3,800 min./week Operating expense: $12,000/week Product M $190/unit 120 units/week 15 min./unit 20 min./unit RM-1 $60/unit Product N $200/unit 80 units/week 15 min /unit B 10 min./unit RM-2 $40/unit 10 min./unit RM-3 $40/unit Process times for each task are shown in the diagram. Each machine is available 3,800 minutes per week. There are no "Murphys" (major opportunities for the system to foul up). Setup and transfer times are zero. Demand is constant. Operating expenses (including labor) total a constant $12,000 per week. Raw materials are not included in weekly operating expenses. a. Which machine is the constraint in this plant? Machine A Machine C Machine B b. Which product mix provides the highest gross profit? (Hint: consider raw material cost but not operating expense) Product M Product N Product mix units units c. What is the maximum weekly net profit this plant can earn using the product mix from Part b? (Hint: consider operating expense and raw material cost) Weekly net profit

Answer rating: 100% (QA)

Determine the monthly load of the each product on machine Monthly load of the product demand x minutes per unit Processing time mins per unit of produ... View the full answer