. Raj and Sons Ltd. manufacture three products, the Dubble, Grubble and Mubble with the following...

 

 

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. Raj and Sons Ltd. manufacture three products, the Dubble, Grubble and Mubble with the following selling prices and costs: Dubble Grubble Mubble Selling price per unit Variable cost per unit Contribution per unit 70 60 28 42 24 36 110 60 50 Joint fixed costs per day £180 Production is restricted by limited supplies of the three materials used in the following ways: Kg per unit required Grubble Total kg Mubble available per day Materials Dubble P. 15 20 15 37.5 30 5 300 320 80 24 R 3 The maximum demand per day: Dubble: 6 units Grubble: 10 units Mubble: 12 units Accepting the material shortages, the finance director wishes production and sales to be at the level which maximises net income. Required: a) Given the material constraints, calculate the optimum production plan sold and the net income which can be achieved assuming a policy of net income maximisation. Required: a) Given the material constraints, calculate the optimum production plan sold and the net income which can be achieved assuming a policy of net income maximisation. You should use the linear programming graphical approach where necessary. (12 marks) b i) Raj and Sons Ltd cannot expand due to the limited materials. They are exploring whether another supplier could provide more of one of the materials at the same price as they currently pay. There is only room in their premises for more of one material. Using the information from the graph, identify the one material that the company should try to source from elsewhere in order to expand production and earn more net (1 mark) income. i) If the constraint for that material were lifted, and cost of the ingredients remains the same, calculate how much more net income could be made. (3 marks) c) Identify the types of industry which are most likely to use linear programming on a regular basis and briefly explain when it is used. (4 marks) . Raj and Sons Ltd. manufacture three products, the Dubble, Grubble and Mubble with the following selling prices and costs: Dubble Grubble Mubble Selling price per unit Variable cost per unit Contribution per unit 70 60 28 42 24 36 110 60 50 Joint fixed costs per day £180 Production is restricted by limited supplies of the three materials used in the following ways: Kg per unit required Grubble Total kg Mubble available per day Materials Dubble P. 15 20 15 37.5 30 5 300 320 80 24 R 3 The maximum demand per day: Dubble: 6 units Grubble: 10 units Mubble: 12 units Accepting the material shortages, the finance director wishes production and sales to be at the level which maximises net income. Required: a) Given the material constraints, calculate the optimum production plan sold and the net income which can be achieved assuming a policy of net income maximisation. Required: a) Given the material constraints, calculate the optimum production plan sold and the net income which can be achieved assuming a policy of net income maximisation. You should use the linear programming graphical approach where necessary. (12 marks) b i) Raj and Sons Ltd cannot expand due to the limited materials. They are exploring whether another supplier could provide more of one of the materials at the same price as they currently pay. There is only room in their premises for more of one material. Using the information from the graph, identify the one material that the company should try to source from elsewhere in order to expand production and earn more net (1 mark) income. i) If the constraint for that material were lifted, and cost of the ingredients remains the same, calculate how much more net income could be made. (3 marks) c) Identify the types of industry which are most likely to use linear programming on a regular basis and briefly explain when it is used. (4 marks)