Suppose that for budgetary reasons the TOYCO model of Example 3.6-3 must reduce the operation times for all three operations by an equal percentage.

(a) Use the 100% rule to determine the percent reduction.

(b) Show that any reduction ratio in the range [0, 1] will work just as well to satisfy Reddy Mikks requirement of keeping the product mix unchanged.

(c) What conclusion can be drawn about the use of the 100% Rule as a basis for solving this problem?

Example 3.6-3

TOYCO uses three operations to assemble three types of toys—trains, trucks, and cars. The daily available times for the three respective operations are 430, 460, and 420 minutes and the revenues per unit of toy train, truck, and car are $3, $2, and $5. The following table specifies the assembly times for each toy:

Transcribed Image Text:

Operation 1 Operation 2 Operation 3 Assembly time/unit (min)a Train 1 3 1 Truck 2 0 4 Car 1 2 0