Aladdin Ltd makes two types of desk lamps: the Gothic lamp and the Bankers lamp. The price of a Gothic lamp is $150 and
Aladdin Ltd makes two types of desk lamps: the Gothic lamp and the Bankers lamp. The price of a Gothic lamp is $150 and the price of a Bankers lamp is $120. Each Gothic lamp undertakes two processes: P1 and P2, whereas a Bankers lamp requires three processes: P1, P2 and P3. All processes involve the use of specialised machines. The machine capacity (in minutes) associated with each process is as follows: Process Number of machining minutes P1 P2 P3 10,800 9,200 3,600 Additional information about the production of these two types of lamps are provided below: Gothic Bankers Weekly demand (units) 350 400 Direct material cost ($) 50 30 Direct labour costs ($) 15 20 Machine time required to process each unit of lamp: P1 (minutes) 15 18 P2 (minutes) 18 16 P3 (minutes) 0 18 Required 1. Identify Aladdin Ltd's binding constraint and the binding constraint's resource gap (minutes). Show your workings. (2 marks) 7 A B I SS 2. According to the Theory of Constraint, what is Aladdin's weekly optimal product mix? Show your workings. (3 marks)
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