The Kim Camera Company produces four different camera models, known as C1?C4. Each model can be made
Question:
The Kim Camera Company produces four different camera models, known as C1?C4. Each model can be made by two different methods. The manual method requires work in the Fabrication, Assembly, and Test departments, while the automated method combines the Assembly and Test operations in one department. The first table below describes the price and cost features of the camera models, along with marketing information on the range of possible sales in the coming month. Because model C1 is delivered to one large retailer under a long-term contract, a threshold demand quantity of 1500 units must be met. For the other models, there is flexibility in how much demand to meet; up to a ceiling that represents maximum possible sales.
The next table provides data on the various departments at the firm, consisting of the time per camera required in each department and the number of hours available in each department during the month.
a. What production plan will maximize profit for Kim Camera?
b. How would the solution in (a) change if there were no threshold requirement for Camera C1?
Expert Answer:
