In this example, shown in Exhibit 18.15, there are two workers producing four products. The plant works

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In this example, shown in Exhibit 18.15, there are two workers producing four products. The plant works three shifts. The market demand is unlimited and takes all the products that the workers can pro- duce. The only stipulation is that the ratio of products sold cannot exceed 10 to 1 between the maximum sold of any one product and the minimum of another. For example, if the maximum number sold of any one of the products is 100 units, the minimum of any other cannot be fewer than 10 units. Workers 1 and 2, on each shift, are not cross-trained and can work only on their own operations. The time and raw material (RM) costs are shown in the exhibit, and a summary of the costs and times involved is on the lower portion of the exhibit. Weekly operating expenses are $3,000. What quantities of A, B, C, and D should be produced?

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Operations Management For Competitive Advantage

ISBN: 1572

11th Edition

Authors: Richard B. Chase, F. Robert Jacobs

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