Question
Flash Electronics Company produces a variety of electronic equipment. One of the plants produces two laser printers: the deluxe and the regular. The demand for
Flash Electronics Company produces a variety of electronic equipment. One of the plants produces two laser printers: the deluxe and the regular. The demand for the printers is 1,000 units of the deluxe and 2,000 units of the regular. The deluxe printer is priced at $900 and the regular printer is priced at $750. The materials cost is $530 for the deluxe printer and $410 for the regular printer. In addition, the company has the following information for the four manufacturing processes (setups, machining, engineering, and packing) showing the amount of time (in minutes) required for each printer for each process, and the total minutes of time available for each process.
Time Required/unit | Time Required/unit | Time | |||
Name | Deluxe | Regular | Available | ||
Setups | 30 | 20 | 80,000 | ||
Machining | 90 | 60 | 220,000 | ||
Engineering | 120 | 80 | 250,000 | ||
Packing | 30 | 40 | 120,000 |
Required:
1. Which process(es), if any, are constraints for the current level of demand?
2. Given any constraints identified in part (1) above, determine the best production and sales plan for the two types of tables. This will be accomplished by performing all three steps based upon the structure below: (1) Identify the constraint (2) Identify the Most Profitable Product
(3)Identify the Most Profitable Product Mix
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