Question: Question 2 2 0 marks ABC electronics is engaged in manufacturing of TVs , Smartphones, and Refrigerators in its factory with 3 0 0 0

Question 220 marks ABC electronics is engaged in manufacturing of TVs, Smartphones, and Refrigerators in its factory with 30000 sq.ft. of area. The company wants to retain at least 10 TVs and 20 smartphones as a fixed reserve in any month. These quantities can be produced in its factory or bought from another company. After taking care of the reserved quantities, any excess production would be sold. Over the last decade, mean selling prices have been INR 25000 and INR 18000 per unit of TVs and smartphones, respectively. The purchase prices are 20% more than the selling prices. Another profitable product is Refrigerator, which company expects to sell at INR 35000 per unit; however, due to an imposed rule by Government, there is a quota on refrigerator production. Any amount more than the applicable quota can be sold only at INR 20000 per unit. At present, the limit for this quota is 50 units. Based on the past experience and requirements of the different product lines, the company knows that the average production capacity in its factory is around 2 units, 3 units, and 4 units per 500 sq.ft. of area for TVs, Smartphones, and Refrigerators product line, respectively. Overall manufacturing cost (including raw material, labour, etc.) converted in terms of the area (i.e.,10 sq. ft.) is INR 7, INR 5, and IN 9 per 10 sq.ft. of area for TVs, Smartphones, and Refrigerators product line, respectively. The company wants to decide how much area to devote to each product line a) Formulate a model for this problem. b) The company's average production capacity directly depends on the workers' performance. Considering three scenarios for workers' performance (i.e., Favourable with 10% above average production capacity, Average, and Unfavourable with 10% below average production capacity), formulate a model for this situation also. You may consider that the three scenarios have an equal probability.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!