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Question 5- Decision Making (Linear programming) (8 marks) Chelonia Ltd manufactures two small robot toys-RV1 and RV2. Both toys go through the Assembly Department and
Question 5- Decision Making (Linear programming) (8 marks) Chelonia Ltd manufactures two small robot toys-RV1 and RV2. Both toys go through the Assembly Department and Packaging Department. The available machine hours for both Assembly and Packaging departments are limited. The Assembly Department has 150 machine hours per day and the Packaging Department has 50 machine hours per day. Additional capacity cannot be obtained in the short run. The company can sell as many toys as it produces The following data is provided RVI RV2 unit) (per unit) Selling price Direct labour Variable manufacturing overhead Hours required Hours required $200 S 50 S120 5 hours 10 hours 2 hours2 houns S350 s 75 S175 in Assembly in Packaging ment ent Required a) Formulate the objective function to maximize the contribution margin.marks) b) Formulate the constraints based on the limited machine hours available. 2 marks)
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