Question: The single machine used for all three products has a maximum capacity of 4 8 0 , 0 0 0 minutes per period. Page 1
The single machine used for all three products has a maximum capacity of
minutes per period.
Page
Required
a
How many units of each product should be produced each period?
b
Oxley has received a proposal from one of its vendors that the vendor could increase the capacity on the machine. What is the maximum Oxley would be willing to pay the vendor for an increase of
machine minutes?
c
Suppose the maximum capacity on the machine was
minutes
instead of
minutes
What is the maximum Oxley would be willing to pay for an increase of
machine minutes?
d
At what capacity
in machine minutes
would the machine no longer be a bottleneck?l
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