A firm makes tow products X and Y and has a total production capacity of 9 tonnes per day, X and Y requiring the same production capacity. The firm has a permanent contract to supply as least 2 tonnes of x and at least 3 tonnes of Y per day to another company. Each tonne of X requires 20 machine-hours production time and each tonne of Y requires 50 machine-hours production time. The daily maximum possible number of machine- hours is 360. All the firm's output can be sold, and the profit made is Rs. 80 per tonne of X and Rs. 120 per tonne of Y. It is required to determine the production schedule for maximum profit and to calculate this profit. Use graphical method to get your solution.

A firm makes tow products X and Y and has a total production capacity of 9 tonnes per day, X and Y requiring the same production capacity. The firm has a permanent contract to supply as least 2 tonnes of x and at least 3 tonnes of Y per day to another company. Each tonne of X requires 20 machine-hours production time and each tonne of Y requires 50 machine-hours production time. The daily maximum possible number of machine- hours is 360. All the firm's output can be sold, and the profit made is Rs. 80 per tonne of X and Rs. 120 per tonne of Y. It is required to determine the production schedule for maximum profit and to calculate this profit. Use graphical method to get your solution.

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

See similar textbooks

Similar questions

In a large microelectronics plant, the assembly cell for circuitboards has a demand for 200 units an hour. Two feeder cellssupply parts A and B to the assembly cell (one A and one Bfor each board). Standard containers that look like dividedtrays are used. A container will hold 20 As or 10 Bs. It takes10 minutes to fill up a container with As and 20 minutes tofill up a container with Bs. Transit time to the assembly cell is5 minutes for both A and B. No safety factor is used. Set up akanban control system for the assembly process.
Two models of controlling boards. The 1" type has high specification for work from the 2nd type. The better type has a profit of 50S and the other 40$ per board. The 1 type of boards requiring five as much as the 2nd needs for production and the total production are 2000 boards, the first model requires 400 min to be complete and 700 min to the second model. Write this expression with LP equations to have the maximum profit with production of each model.
. Sarah’s Organic Soap Company makes four kinds of organic liquid soap: “regular,”“lavender,” “citrus,” and “tea tree.” Demands for the four scents are 150, 120, 75, and50 kgs per hour, respectively. Sarah’s production process can produce any soap at therate of 450 kgs per hour, but 1.5 hours are needed to switch between scents. Duringthose switchover times, the process doesn’t produce any soap. Sarah wants to choosea production schedule that (i) cycles repeatedly through the four scents, (ii) meets therequired demand, and (iii) minimizes the amount of inventory held.How many kgs of “regular” should Sarah produce before switching over to another scent?
The UCC only covers goods transaction, not services transactions. True False
Atlanta Manufacturing Company produces products W, X, Y, and Z through a joint process. The joint costs amount to $250,000. Product Units Produced Sales Value at Split-Off Additional Costs of Processing Sales Value After Processing W 750 $10,000 $2,500 $15,000 X 1,500 $30,000 $3,000 $35,000 Y 1,000 $20,000 $4,000 $25,000 Z 1,500 $40,000 $6,000 $45,000 If W is processed further, profits of W will: 1) Increase by $2,500 2) Increase by $12,500 3) Decrease by $23,000 4) Increase by $5,000
Compute Lead Time Bhojraj Fabricators Inc. machines metal parts for the automotive industry. Under the traditional manufacturing approach, the parts are machined through two processes: milling and finishing. Parts are produced in batch sizes of 30 parts. A part requires 7 minutes in milling and 9 minutes in finishing. The move time between the two operations for a complete batch is 4 minutes. Under the lean philosophy, the part is produced in a cell that includes both the milling and finishing operations. The operating time is unchanged; however, the batch size is reduced to 2 parts and the move time is eliminated. Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the traditional and lean manufacturing methods. If required, round percentages to one decimal place. Traditional Philosophy Lean Manufacturing Philosophy Value-added time Non-value-added time Total lead time Value-added ratio (as a percent) X min X min min % min min min %
Compute Lead Time Jackson Fabricators Inc. machines metal parts for the automotive industry. Under the traditional manufacturing approach, the parts are machined through two processes: milling and finishing. Parts are produced in batch sizes of 80 parts. A part requires 2 minutes in milling and 6 minutes in finishing. The move time between the two operations for a complete batch is 7 minutes. Under the lean philosophy, the part is produced in a cell that includes both the milling and finishing operations. The operating time is unchanged; however, the batch size is reduced to 5 parts and the move time is eliminated. Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the traditional and lean manufacturing methods. If reguired, round percentages to one decimal place. Traditional Philosophy Lean Manufacturing Philosophy Value-added time 8 V min 8 V min Non-value-added time 632 X min 48 x min Total lead time 640 x min 56 x min Value-added ratio…
An assembly line requires two components: gadjits and widjits. Gadjits are produced by center 1 and widjits are produced by center 2. Each unit of the end item, called a jit-together, requires 3 gadjits and 2 widjits. The daily production quota on the assembly line is 775 jit-togethers. The container for gadjits holds 85 units. The policy variable for center 1 is set at 0.08. The average waiting time for a container of gadjits is 0.08 day, and 0.05 day is needed to produce a container. The container for widjits holds 55 units, and the policy variable for center 2 is 0.05. The average waiting time per container of widjits is 0.16 day, and the time required to process a container is 0.23 day. a. How many containers are needed for gadjits? b. How many containers are needed for widjits? containers. (Enter your response rounded up to the next whole number.) containers. (Enter your response rounded up to the next whole number.)
An assembly line requires two components: gadjits and widjits. Gadjits are produced by center 1 and widjits are produced by center 2. Each unit of the end item, called a jit-together, requires 3 gadjits and 2 widjits. The daily production quota on the assembly line is 775 jit-togethers. The container for gadjits holds 75 units. The policy variable for center 1 is set at 0.05. The average waiting time for a container of gadjits is 0.08 day, and 0.07 day is needed to produce a container. The container for widjits holds 40 units, and the policy variable for center 2 is 0.07. The average waiting time per container of widjits is 0.15 day, and the time required to process a container is 0.29 day. a. How many containers are needed for gadjits? 5 containers. (Enter your response rounded up to the next whole number.) b. How many containers are needed for widjits? containers. (Enter your response rounded up to the next whole number.)
An assembly line requires two components: gadjits and widjits. Gadjits are produced by center 1 and widjits are produced by center 2. Each unit of the end item, called a jit-together, requires 3 gadjits and 2 widjits. The daily production quota on the assembly line is 775 jit-togethers. The container for gadjits holds 75 units. The policy variable for center 1 is set at 0.05. The average waiting time for a container of gadjits is 0.08 day, and 0.07 day is needed to produce a container. The container for widjits holds 40 units, and the policy variable for center 2 is 0.07. The average waiting time per container of widjits is 0.15 day, and the time required to process a container is 0.29 day. a. How many containers are needed for gadjits? containers. (Enter your response rounded up to the next whole number.)
The Northridge Company tends to keep the inventory low. At the same time, it is important to respond to demand quickly, since a customer who wants a product K is very likely to get one from a competitor if Northridge Company doesn’t have one available immediately. Northridge Company’s current policy to produce the product K is to produce 100 per week, which is the average demand. Even this is a problem, as the production manager has pointed out, since the equipment is also used for other products and the lot size of 300 would be much more efficient. He said he is currently set up the production for product K for the next week and states that he has capacity available to produce 300 at a time next week. The following lists the forecasts and actual customer orders for the next 12 weeks. Week 1 2 3 4 5 6 7 8 9 10 11 12 Forecast 90 120 110 80 85 95 100 110 90 90 100 110 Customer Orders 105 97 93 72 98 72 53 21…
30) XYZ Company The XYZ Company uses 175 handles per day. The company operates 300 days per year. It costs $2.00 to carry one handle in inventory for one year. When handle inventory is low, an order is sent to the fabrication department to manufacture more handles. Fabrication can produce handles at a rate of 1500 per day and send the handles over to assembly while production is in progress. The setup for each production run costs $500. Assume the XYZ company orders 9,000 handles at a time (not necessarily the economic order quantity). The order receipt period = _____ days. Group of answer choices a) 6.0 b) 5.8 c) 30.0 d) 51.4 e) 50.0