Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(1). A company produces items at three plants. At each plant, the labor, raw material and production costs (excluding labor cost) required to build

image text in transcribedimage text in transcribed

(1). A company produces items at three plants. At each plant, the labor, raw material and production costs (excluding labor cost) required to build an item are: plant labor (hours) required raw material required production cost 1 2 3 20 16 10 5 8 7 50 80 100 Each plant has sufficient machine capacity to produce up to 750 items per week. Each of the company's workers can work upto 40 hours per week and is paid $12.50 per hour worked. The company has 525 workers and 9400 units of raw material. Each week at least 1400 items must be produced. Define x; number of items produced at plant i = 1,2,3 each week. The Lindo output to minimize the company's total cost (labor and production) is given below: (a). What would be the new optimal solution if the production cost at plant 1 was only $ 40? (b). Find the new optimal solution if the capacity at plant 3 is increased by 100 items? (c). What would be the company's cost if it had to produce 100 more items? (d). What would be the new optimal solution if the production cost at plant 1 was only $40 and the capacity at plant 3 is increased by 100 items?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding Financial Accounting

Authors: Christopher Burnley, Robert Hoskin, Maureen Fizzell, Donald

1st Canadian Edition

1118849388, 9781119048572, 978-1118849385

More Books

Students also viewed these Accounting questions

Question

What chemical events occur during the digestion of food?

Answered: 1 week ago