1. MANCO produces three products: X, Y and Z. The production process uses raw materials, R1, and R2, which are processed on facilities F1 and F2. The following table provides the pertinent data of the problem. Usage per unit Resource Units X Y z Maximum daily capacity F1 Minutes 1 2 1 430 F2 Minutes 3 0 2 460 R1 Kg 1 4 0 420 R2 kg 1 1 1 300 The minimum daily demand for Y is 20 units, and the maximum demand for Z is 240 units. The unit profit contributions of X, Y and Z are P300, P200, and P500, respectively. MANCO management is discussing means to improve the financial situation of the company. Discuss the feasibility of the following proposals. Which among the five proposals gives you the maximum profit for the company? (20 POINTS) a. The per unit profit of Z can be increased by 20%, but this will reduce potential market demand to 210 units instead of the present 240 units. b. Raw material, R2, appears to be a critical factor in limiting current production. Additional units can be secured from a different supplier whose price per kg is P3 higher than the present supplier. C. Capacities of F1 and F2 can be increased by up to 40 minutes a day, each for an additional cost of P35/day. d. The chief buyer of Y is requesting that its daily supply be increased from the present 70 units to 100 units. The per unit processing time of X on F2 can be reduced from 3 to 2 minutes at an additional cost of P4/day. e. 1. MANCO produces three products: X, Y and Z. The production process uses raw materials, R1, and R2, which are processed on facilities F1 and F2. The following table provides the pertinent data of the problem. Usage per unit Resource Units X Y z Maximum daily capacity F1 Minutes 1 2 1 430 F2 Minutes 3 0 2 460 R1 Kg 1 4 0 420 R2 kg 1 1 1 300 The minimum daily demand for Y is 20 units, and the maximum demand for Z is 240 units. The unit profit contributions of X, Y and Z are P300, P200, and P500, respectively. MANCO management is discussing means to improve the financial situation of the company. Discuss the feasibility of the following proposals. Which among the five proposals gives you the maximum profit for the company? (20 POINTS) a. The per unit profit of Z can be increased by 20%, but this will reduce potential market demand to 210 units instead of the present 240 units. b. Raw material, R2, appears to be a critical factor in limiting current production. Additional units can be secured from a different supplier whose price per kg is P3 higher than the present supplier. C. Capacities of F1 and F2 can be increased by up to 40 minutes a day, each for an additional cost of P35/day. d. The chief buyer of Y is requesting that its daily supply be increased from the present 70 units to 100 units. The per unit processing time of X on F2 can be reduced from 3 to 2 minutes at an additional cost of P4/day. e
