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A product is assembled from three parts that can be manufactured on two machines A and B. Neither machine can process different parts at the

A product is assembled from three parts that can be manufactured on two machines A and B. Neither machine can process different parts at the same time. The number of parts processed by each machine per hour are summarized below:

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Management seeks a daily schedule (for 8 hrs/day) of the machines so that the number of assemblies is maximized. Currently the company has three machines of type A and five machines of type B. Solve the problem. If only one machine can be acquired, which type would you recom- mend and why? Management is contemplating the purchase of a type A machine at a cost of $100,000. Suppose that the life of the machine is 10 years and that each year is equivalent to 2000 working hours. Would you recommend the purchase if the unit profit from each assembly is $ 1 ? Why or why not?

MACHINE AMACHINE B Part 1 Part 2 Part 3 10 16 12 25

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