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Problem 225-17 (Algo) The M-N plant manufactures two different products: M and N. Selling prices and weekly market demands are shown in the following diagram. Each praduct uses raw materials with costs as shown. The plant has three different machines: A, B, and C. Each performs different tasks and can work on only one unit of material at a time. Product M Resources: A, B, C (one each) Availability: 3,900 min./week Operating expense: $12,000/week $190/unit 100 units/week Product N $200/unit 50 units/week 15 min./unit 15 min/unit A B 20 min./unit 15 min./unit 15 min./unit RM-1 $60/unit RM-2 $40/unit RM-3 $40/unit Process times for each task are shown in the diagram. Each machine is available 3,900 minutes per week. There are no "Murphys" (major opportunities for the system to foul up). Setup and transfer times are zero. Demand is constant. Operating expenses (including labor) total a constant $12,000 per week. Raw materials are not included in weekly operating expenses. a. Which machine is the constraint in this plant? O Machine A O Machine B O Machine C b. Which product mix provides the highest gross profit? (Hint: consider raw material cost but not operating expense) Product mix Product M Product N units units c. What is the maximum weekly net profit this plant can earn using the product mix from Part b? (Hint: consider operating expense and raw material cost) Weekly net profit

Problem 225-17 (Algo) The M-N plant manufactures two different products: M and N. Selling prices and weekly market demands are shown in the following diagram. Each praduct uses raw materials with costs as shown. The plant has three different machines: A, B, and C. Each performs different tasks and can work on only one unit of material at a time. Product M Resources: A, B, C (one each) Availability: 3,900 min./week Operating expense: $12,000/week $190/unit 100 units/week Product N $200/unit 50 units/week 15 min./unit 15 min/unit A B 20 min./unit 15 min./unit 15 min./unit RM-1 $60/unit RM-2 $40/unit RM-3 $40/unit Process times for each task are shown in the diagram. Each machine is available 3,900 minutes per week. There are no "Murphys" (major opportunities for the system to foul up). Setup and transfer times are zero. Demand is constant. Operating expenses (including labor) total a constant $12,000 per week. Raw materials are not included in weekly operating expenses. a. Which machine is the constraint in this plant? O Machine A O Machine B O Machine C b. Which product mix provides the highest gross profit? (Hint: consider raw material cost but not operating expense) Product mix Product M Product N units units c. What is the maximum weekly net profit this plant can earn using the product mix from Part b? (Hint: consider operating expense and raw material cost) Weekly net profit

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter12: Queueing Models
Section: Chapter Questions
Problem 59P
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Problem 225-17 (Algo) The M-N plant manufactures two different products: M and N. Selling prices and weekly market demands are shown in the following diagram. Each praduct uses raw materials with costs as shown. The plant has three different machines: A, B, and C. Each performs different tasks and can work on only one unit of material at a time. Product M Resources: A, B, C (one each) Availability: 3,900 min./week Operating expense: $12,000/week $190/unit 100 units/week Product N $200/unit 50 units/week 15 min./unit 15 min/unit A B 20 min./unit 15 min./unit 15 min./unit RM-1 $60/unit RM-2 $40/unit RM-3 $40/unit Process times for each task are shown in the diagram. Each machine is available 3,900 minutes per week. There are no "Murphys" (major opportunities for the system to foul up). Setup and transfer times are zero. Demand is constant. Operating expenses (including labor) total a constant $12,000 per week. Raw materials are not included in weekly operating expenses. a. Which machine is the constraint in this plant? O Machine A O Machine B O Machine C b. Which product mix provides the highest gross profit? (Hint: consider raw material cost but not operating expense) Product mix Product M Product N units units c. What is the maximum weekly net profit this plant can earn using the product mix from Part b? (Hint: consider operating expense and raw material cost) Weekly net profit
Transcribed Image Text:Problem 225-17 (Algo) The M-N plant manufactures two different products: M and N. Selling prices and weekly market demands are shown in the following diagram. Each praduct uses raw materials with costs as shown. The plant has three different machines: A, B, and C. Each performs different tasks and can work on only one unit of material at a time. Product M Resources: A, B, C (one each) Availability: 3,900 min./week Operating expense: $12,000/week $190/unit 100 units/week Product N $200/unit 50 units/week 15 min./unit 15 min/unit A B 20 min./unit 15 min./unit 15 min./unit RM-1 $60/unit RM-2 $40/unit RM-3 $40/unit Process times for each task are shown in the diagram. Each machine is available 3,900 minutes per week. There are no "Murphys" (major opportunities for the system to foul up). Setup and transfer times are zero. Demand is constant. Operating expenses (including labor) total a constant $12,000 per week. Raw materials are not included in weekly operating expenses. a. Which machine is the constraint in this plant? O Machine A O Machine B O Machine C b. Which product mix provides the highest gross profit? (Hint: consider raw material cost but not operating expense) Product mix Product M Product N units units c. What is the maximum weekly net profit this plant can earn using the product mix from Part b? (Hint: consider operating expense and raw material cost) Weekly net profit
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