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Course Assignment 2 Read the case study of the term and answer the questions in the scenario below. It is now April 2023. The Production
Course Assignment 2 Read the case study of the term and answer the questions in the scenario below. It is now April 2023. The Production Facility has been running to full capacity and, because of a period of good weather, customers have been placing orders earlier than anticipated. You receive the following email: From: Savita Shama, Finance Manager To: Finance Officer Subject: Spare capacity and Cost transformation model Mavis Jones, Production Director, has identified that we could have some spare capacity in the Enameling Department next month after our budgeted production has been achieved. She has suggested that this capacity could be used on urgent orders for Rocket and small Wheel grils that we have just received from two new customers. These orders cannot be met from inventory. The details are Customer 1200 Rocket and 180 Wheel grills Customer 2300 Rocket and 6 Wheel grills The customers have both said that they will accept partial orders but only if they are delivered by the end of the month. However, it has now been identified that we might not have enough frit and/or furnace hours available to fulfil these orders. I have produced a linear programming graph (Graph 1 attached) to help decide how best to use the spare capacity. 1. Required Please prepare a briefing paper for the Senior Management Team (SMT) which explains the feasible region of Graph 1, how to use the graph to determine the optimal production plan and what that optimal production plan is. Please also explain the factors we should consider before proceeding with this production plan. [52 marks]
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