Harkin Electronics is planning its production for the next quarter for its two product lines, relays and
Question:
Harkin Electronics is planning its production for the next quarter for its two product lines, relays and capacitors. The profit contribution is $250 for a case of relays and $200 for a case of capacitors. Three resources limit how much of each product the company can produce: labor, stamping capacity, and testing capacity. Next quarter 80,000 labor hours will be available; a case of relays requires 200 labor hours and a case of capacitors requires 150. The stamping machine will be available for 1,200 hours next quarter and a case of relays requires 4 hours on the stamping machine and a case of capacitors requires 2 hours. Relays require 3 hours of testing per case and capacitors require 5. The testing machine will be available for 2,000 hours next quarter. For every case of capacitors, the company can produce no more than two cases of relays. At a minimum the company must produce at least 150 cases of relays.
Formulate the constraints for the following two requirements. However, you do not need to resolve the problem.
- Now suppose that there is a requirement that of the total labor hours used by Harkins, at least 60% of the hours must be used for producing relays.
- The profit must be at least $100,000.
Global Marketing management
ISBN: 978-0470505748
5th edition
Authors: Masaaki Kotabe, Kristiaan Helsen