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Armando Corp produces four brands of King mattresses as follows: Latex Mattresses (P1) Innerspring Latex Hybrid Mattress (P2) Polyfoam Latex Hybrid (P3) Waterbeds (P4)
Armando Corp produces four brands of King mattresses as follows: Latex Mattresses (P1) Innerspring Latex Hybrid Mattress (P2) Polyfoam Latex Hybrid (P3) Waterbeds (P4) All products go through three Departments (D1, D2 and D3), but the time needed for each product at different departments varies. Data regarding the total demand for each product, the time required for each product in each department, selling prices, fixed and variable costs for each product, as well as available capacity (in terms of time) in each department (for last month) are presented as follows: Product 1 Product Product Product 2 3 4 Total demand per month (units) 1,377 1,306 1,225 934 Selling prices per unit $199 $300 $419 $476 Unit variable cost per product $99 $126 $163 $260 Unit fixed cost $10 $29 $13 $9 Department 1 time needed per 5 4 6 2 unit (minute) Department 2 time needed per 4 3 st 4 6 unit (minute) Department 3 time needed per unit (minute) 5 2 CO 6 5 Total time available in Department 1 in minutes Total time available in Department 2 in minutes 21,467 8,818 Total time available in Department 3 in minutes 21.693
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