Question: Kindly only answer 3.4 and 3.5 Question 3 (37 marks) Windhoek Limited produces two products, product W and product L. These products are processed in

Kindly only answer 3.4 and 3.5 Kindly only answer 3.4 and 3.5 Question 3 (37 marks) Windhoek Limited

Question 3 (37 marks) Windhoek Limited produces two products, product W and product L. These products are processed in three departments: Department P. Department and Department R. The selling prices and machining costs per unit in each department are as follows: Product W Product L Selling price N$84 N$128 Machining costs Dept.P N$40 N$30 Dept. Q N$16 NO Dept.R N$24 N$30 The machining costs per hour to produce each unit of Product Ware as follows: Dept. P-N$5 hour Page 12 of 15 Dept. Q-N$4/hour and Dept. R. N$2/hour To produce one unit of Product L, the machining costs per hour are as follows: Dept. P. N$3/hour Dept. Q-N$6/hour and Dept R-N$5/hour Due to the age of the machines in Windhoek Limited, it is anticipated that there will be only 11 000 machine hours available in Dept. P. 9 000 hours in Dept. Q and 12 000 hours in Dept. R for the forth-coming period. Windhoek Limited are not sure how many units of each product can they produce given this resource constraint they are currently facing Requirement Marks Using the The management of Windhoek Limited is of the opinion that the optimum solution can be more accurate if the simplex method is applied. Prepare the extended model that can be used to solve this problem if the simplex method is used Explain under what situations is the graphical method more appropriate and 5.5 under what situations the simplex method is more appropriate Total End of assignment 1: 92 marks

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