Problem 2 Optimization (50 points) The Computer Company The Management of the Computer Company is trying to determine the optimal weekly production amount Hardware Assembly amount of the two laptops over the coming planning period. The information concerning labor availability, labor utilization, and product profitability is given in the table on the right. Neither laptop should account for more than 60% of the entire production of the entire production Product (hours/unit) Laptop 1 Labor-Hours Available Department Laptop 2 Software Instalation Testing Profit contribution/unit 3 2 $305 3.5 2 120 56 50 $155 a) Determine the optimal production quantities b) If overtime can be scheduled, which department would you recommend for scheduling overtime? How much would you be willing to pay per hour of overtime in each department? c) Do you need to revise your production plan if profit per unit of Laptop 1 goes down from $305 to $295. What happens with the profit? d) An engineer is willing to work two extra hours in testing for a pay $50 per hour. Is it profitable to higher an engineer? Decision quantities Laptop 1 laptop 2 0 0 profit- $0 constraints Hardware assembly time used time available 120 56 50 software installation testing produced production limit Laptop1 Laptop 2 0 0 Problem 2 Optimization (50 points) The Computer Company The Management of the Computer Company is trying to determine the optimal weekly production amount Hardware Assembly amount of the two laptops over the coming planning period. The information concerning labor availability, labor utilization, and product profitability is given in the table on the right. Neither laptop should account for more than 60% of the entire production of the entire production Product (hours/unit) Laptop 1 Labor-Hours Available Department Laptop 2 Software Instalation Testing Profit contribution/unit 3 2 $305 3.5 2 120 56 50 $155 a) Determine the optimal production quantities b) If overtime can be scheduled, which department would you recommend for scheduling overtime? How much would you be willing to pay per hour of overtime in each department? c) Do you need to revise your production plan if profit per unit of Laptop 1 goes down from $305 to $295. What happens with the profit? d) An engineer is willing to work two extra hours in testing for a pay $50 per hour. Is it profitable to higher an engineer? Decision quantities Laptop 1 laptop 2 0 0 profit- $0 constraints Hardware assembly time used time available 120 56 50 software installation testing produced production limit Laptop1 Laptop 2 0 0
