Question: Watts Electronics (Adapted from Heizer Render, Operations Management, 2006.) Watts Electronics manufactures three products: internal modems, external modems, and graphics circuit boards. Production of each
Watts Electronics (Adapted from Heizer Render, Operations Management, 2006.)
Watts Electronics manufactures three products: internal modems, external modems, and graphics circuit boards. Production of each product requires testing on each of three test devices. The following table shows the minutes required to test each product on each device. For example, producing each internal modem requires 7 minutes of testing on test device 1, 2 minutes on test device 2, and 5 minutes on test device 3.
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| Test Device #1 | Test Device #2 | Test Device #3 |
| Internal Modems | 7 | 2 | 5 |
| External Modems | 3 | 5 | 2 |
| Graphics Boards | 8 | 3 | 3 |
Test devices 1 and 2 are each available for 120 hours per week. Test device 3 requires additional preventative maintenance and is available for 100 hours per week. Each test device requires an operating technician. The cost for a technician is $15 per hour. In addition, each device uses various disposable supplies while it is being operated. The cost of disposable supplies for test device 1 is $5 per hour. The corresponding costs for test devices 2 and 3 are $2 and $8 per hour respectively.
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