Question
Your company manufactures printer cases on two different injection molding machines. The M-100 has a capacity of 25 cases per hour, and the M-200 has
Your company manufactures printer cases on two different injection molding machines. The M-100 has a capacity of 25 cases per hour, and the M-200 has a capacity of 40 cases per hour.
Both machines use the same chemicals in the manufacturing process; the M-100 uses 40 pounds of material per hour, and the M-200 uses 50 pounds per hour.
Your client has asked you to produce as many cases as possible next week, and they will pay $18 for every case you can deliver.
Unfortunately, you had scheduled maintenance down-time for both of your machines next week, so the M-100 will only be available for 15 hours maximum, and the M-200 will only be available for 10 hours maximum. However, due to the high setup costs, if you run either machine during the week, they must run for a minimum of 5 hours.
That last sentence has the potential to make this an interesting problem.
The operating costs of the machines are $50/hour for the M-100 and $75/hour for the M-200.
Your chemical supplier has 1000 pounds of chemicals available next week at a cost of $6 per pound.
What is your business decision for next week, and how much profit will it generate?
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