Problem 2 Optimization (50 points)
The Computer Company			Product (hours/unit)		Labor-Hours
The Management of the Computer Company		Department	Laptop 1	Laptop 2	Available
is trying to determine the optimal weekly production amount		Hardware Assembly	10	3.5	120
amount of the two laptops over the coming planning		Software Instalation	3	2	56
period. The information concerning labor		Testing	2	5	50
availability, labor utilization, and product		Profit contribution/unit	$305	$155
profitability is given in the table on the right.
Neither laptop should account for more than 60%
of the entire production.
a) Determine the optimal production quantities.
b) If overtime can be scheduled, which department
would you recommend for scheduling overtime?
How much would you be willing to pay per hour
of overtime in each department?
c) Do you need to revise your production plan if
profit per unit of Laptop 1 goes down from
$305 to $295. What happens with the profit?
d) An engineer is willing to work two extra hours
in testing for a pay $50 per hour. Is it profitable
to higher an engineer?