how weekly production schedule that will maximize the profits ?

Posted on 2013-12-13 14:02:00 in Math by HENRY

The Bestend calculator company assembles and markers two type of calculator, A and B. Some relevant facts concerning these calculators are as follows:

Type	Total component cost’ per calculator	Assembly time per calculator (in man-hours)	Average “man-minutes” of inspection and correction time per calculator	Selling price per calculator
A	$ 100	12	10	$200
B	$ 80	6	35	$. 140

The disparity in inspection and correction time is due to the fact that some of the components in the B calculators are of cheaper and lower quality than those in A calculators. The company employs 100 assemblers, who are paid $ 2 per hour actually worked and who will work to a maximum of 48 hours per week each. The inspectors, of whom there are currently four, have agreed to a plan whereby they average 40 hours of work per week each. However the four inspectors have certain other administrative duties which have been found to take on an average 8 hours per week between them. The only other cost is fixed overheads of $ 10,000 per week regarding marketing opportunities available, thesales manager, 1/3 believes he could sell upto 300 of either type. It is desired to formulate the weekly production schedule that will maximize the profits. ?

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