Question: Groups 2 & 8 [30] QUESTION 1/1 i. A workshop produces a gadget with two parts A and B plus its package C. A, B
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Groups 2 & 8 [30] QUESTION 1/1 i. A workshop produces a gadget with two parts A and B plus its package C. A, B and C must be processed through workstations 1, 2 and 3 The accountant analyses cost and sales data and states that each part A and B produced will yield a R3, R2 contribution to profit respectively. Each package C produced will reduce the profit by R1. The production manager specifies the following: A cost of up to R9 is incurred at workstation 1, at least R2 at workstation 2 and at least RS at workstation 3. Each part A produced costs R1 on workstation 1, R2 on workstation 2 and R3 on workstation 3. Producing each part B costs R3 on workstation 1, R3 on workstation 2 and R2 is reduced from the cost at workstation 3. Producing each part costs R1 on workstation 1, reduces R1 from the cost at workstation 2 and adds a cost of R1 at workstation 3. Solve with the Simplex Method, using Excel Solver. [2 2 ii. (4) Generate a sensitivity analysis report What is the maximum amount of profit that the company can get by having some additional hours at workstation 1? iii. [3] iv. What is the lowest number of hours allowable at workstation 2? [3]
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