Question: Consider the TOYCO model. (a) Suppose that any additional time for operation 1 beyond its current capacity of 430 minutes per day must be done

Consider the TOYCO model.

(a) Suppose that any additional time for operation 1 beyond its current capacity of 430 minutes per day must be done on an overtime basis at $50 an hour. The hourly cost includes both labor and the operation of the machine. Is it economically advantageous to use overtime with operation I?

(b) Suppose that the operator of operation 2 has agreed to work 2 hours of overtime daily at $45 an hour. Additionally, the cost of the operation itself is $10 an hour.

What is the net effect of this activity on the daily revenue?

(d) Suppose that the daily availability of operation 1 is increased to 440 minutes. Any overtime used beyond the current maximum capacity will cost $40 an hour. Determine the new optimum solution, including the associated net revenue.

(e) Suppose that the availability of operation 2 is decreased by 15 minutes a day and that the hourly cost of the operation during regular time is $30. Is it advantageous to decrease the availability of operation 2?

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