Wooden Toys Inc. produces two wooden toys: boat and train. A boat toy sells for 27 SAR.
Question:
Wooden Toys Inc. produces two wooden toys: boat and train. A boat toy sells for 27 SAR. It costs the company 10 SAR for raw materials and 14 SAR for labor. Similarly, a train toy sells for 21 SAR and costs 9 SAR for raw materials and 10 SAR for labor. The manufacture of wooden boats and trains requires two types of skilled labor: carpentry and finishing. A boat requires 2 hours of finishing labor and 1 hour of carpentry labor. A train requires 1 hour of finishing and 1 hour of carpentry labor. Each week, the company can obtain all the needed raw material but only 100 finishing hours and 80 carpentry hours. Demand for trains is unlimited, but at most 40 boats are bought each week. Formulate the problem mathematically. Thereafter, find the optimal product mix using each of the following methods
a. Graphical methods.
b. Tora software.
Operations Management in the Supply Chain Decisions and Cases
ISBN: 978-0073525242
6th edition
Authors: Roger Schroeder, M. Johnny Rungtusanatham, Susan Goldstein