Question: Products A, B, C, D and E require the same processing facility for their manufacture. At any one time, therefore, this facility can produce only
Products A, B, C, D and E require the same processing facility for their manufacture. At any one time, therefore, this facility can produce only one of the five product types. The time required per unit of product is: Table 1 Product Time(Minutes) 0,75 1,25 The estimated potential demand in the next planning period in the four sales areas supplied by the plan is as follows: Demand(no. Of units) Product Type Table 2 6.000 3.000 5.000 6.000 Sales Area 1 2000 6000 5.000 9.000 Sales Area 2 1000 3.000 2.000 4.000 Sales Area 3 2.000 3.000 5.000 2.000 Sales Area 4 15.000 14.000 6.000 17.000 12.000 Total selling prices of the same products are identical in all areas; differences in transportation costs, however, mean that the profit per unit sold will be different in the areas, as indicated below. Profit(mu/unit) Table 3 475 375 S25 Sales Area 1 4,80 3,30 5.00 5,04 Sales Area 2 313 Sales Area 3 4,00 5,00 5,15 5,25 4.50 3,50 505 515 Sales Area 4
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
