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Questions:

A company produces two product. , P1 and P2. The company's weekly demand consists of at least 1000 P1 and 800 P2. The company produce all the requested units with its present one-shift capacity and must use overtime and possibly subcontract with other tool shops. In regular shift producing costs are $ 2 and $ 2.5, respectively. Overtime porduction costs are $ 2.5 and $ 3, respectively. Subcontracting costs are $ 3 and $ 4, respectively. The result is an increase in the production cost per unit, as shown in the following table. Demand of P1 should equal to at least 30% of demand of P2. What is the amount of P2 to be subcontracted?

a.) What is the optimal solution?

b.) What is the amount of P1 to be produced overtime?

c. )What is the amount of P2 to be produced overtime?

d.) What is the amount of P1 to be subcontracted?

e.) What is the amount of P2 to be subcontracted?

f.) What is the amount of P1 to be Regular?

g.) What is the amount of P2 to be Regular?

Regular PI P2 Overtime Subcontracting Regular Overtime Subcontracting Production Type Weekly Production range (units) 0-200 201-500 501-infinity 0-300 301-500 501-infinity Regular PI P2 Overtime Subcontracting Regular Overtime Subcontracting Production Type Weekly Production range (units) 0-200 201-500 501-infinity 0-300 301-500 501-infinity