8 The M-N plant manufactures two different products: M and N. Selling prices and weekly mar- ket...
Question:
8 The M-N plant manufactures two different products: M and N. Selling prices and weekly mar- ket demands are shown in the following diagram. Each product 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. Process times for each task are shown in the diagram. Each machine is available 2,400 min- utes 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. Where is the constraint in this plant?
b. What product mix provides the highest profit?
c. What is the maximum weekly profit this plant can eam?
Step by Step Answer:
Operations Management For Competitive Advantage
ISBN: 1572
11th Edition
Authors: Richard B. Chase, F. Robert Jacobs