8. (a) Determine the optimal weekly production schedule for Burroughs. (b) Determine the worth of one hour

Question:

8.

(a) Determine the optimal weekly production schedule for Burroughs.

(b) Determine the worth of one hour of cutting, sewing, and packaging in terms of the total revenue.

(c) If overtime can be used in cutting and sewing, what is the maximum hourly rate Burroughs should pay for overtime?

ChemLabs uses raw materials I and II to produce two domestic cleaning solutions, A and B. The daily availabilities of raw materials I and II are 150 and 145 units, respectively.

One unit of solution A consumes .5 unit of raw materiall and .6 unit of raw materialll, and one unit of solution Buses .5 unit of raw materiall and .4 unit of raw materialll. The prices per unit of solutions A and Bare $8 and $10, respectively. The daily demand for solution A lies between 30 and 150 units, and that for solution B between 40 and 200 units.

(a) Find the optimal amounts of A and B that ChemLab should produce.

(b) Use the dual prices to determine which demand limits on products A and B should be relaxed to improve profitability.

(c) If additional units of raw material can be acquired at $20 per unit, is this advisable?

Explain.

(d) A suggestion is made to increase raw material II by 25% to remove a bottleneck in production. Is this advisable? Explain.

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