THE RED N = 5

DO NOT USE EXCEL

DO NOT USE EXCEL

Q2(a) A gardening supply company manufactures two types of mulch bins - the Compacto and the Enviro. The production of each bin involves a certain amount of moulding, pressing and assembly hours as indicated below. Department Mulch Bin Compacto Enviro 5 hours 6 hours Moulding Pressing Assembly 8 hours 5 hours 9 hours 14 hours Next month, the company has maximum available capacities of 630 hours for assembly, 300 hours for moulding and 400 hours for pressing. The company has advance orders for 15 Compacto mulch bins and for 10 Enviro mulch bins and is committed to supplying these next month. A profit of $5,000 is made from the sale of each Enviro mulch bin and $N,000 for each Compacto mulch bin. Using graphical and mathematical methods to determine: - How many Compacto and Enviro mulch bins should be manufactured next month to fulfill advance orders and maximize profits? How much profit will be made? Assume that partially completed mulch bins can be manufactured but that only completed bins can be sold for profit. Bins on advance order have not yet been paid for. (80 marks) Q2(b) At the optimum production mix for next month, which if any, of the three departments has any excess capacity, i.e. hours available that are not used? Indicate the amount of any excess capacity in hours. Q2(c) If the profit from the sale of each Enviro mulch bin increases from $5,000 to $15,000 because of its appearance on a popular TV gardening show, how would this affect the proposed production mix for the coming month