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Aquila is a specialist car manufacturer and currently if has two models; the LXT and HXT. The contribution to profits for the LXT is 580
Aquila is a specialist car manufacturer and currently if has two models; the LXT and HXT. The contribution to profits for the LXT is 580 and for the HXT it is 440. During manufacture each product has to pass through 3 workshops: the Body shop, the Assembly shop and the Painting shop. LXT requires 5 hours in the Body Shop, 9 hours in the Assembly shop and 7 hours in the Painting shop. The HXT model requires 10 hours in the Body shop, 2 hours in the Assembly shop and 5 hours in the Painting shop. Each shop works 40 hours per week. There is also a requirement that at least 60% of the total weekly output must be for the model LXT. (f) A major customer complains about the quality of the upholstery for the cars they receive. After investigating the issue, management decide that the interior of all cars should be cleaned as a separate process rather than in the Painting shop. LXT would require 5 hours for cleaning and HXT would require 4 hours. Management estimate that 30 hours could be made available for this new process without affecting the availability of resources in the other three shops. Would the introduction of the cleaning process change the optimal production plan already produced
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