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The company has three months (April. May and June) for subtracting the units for both NOOR-Company's and AL-SALAM company The company should first satisfy AlNOOR
- The company has three months (April. May and June) for subtracting the units for both NOOR-Company's and AL-SALAM company
- The company should first satisfy AlNOOR company demand then AL-SALAM company demand.
- Both production units will work in producing the units
- Production Unit B will be busy during April
- The company can work up to 24 hours per day
- The profit should be at least $1500
Do you think that XYZ-Company should accept or reject the offer?
The XYZ-company has received offers for subcontracting from NOOR-Company's and AL- SALAM company. Table (1) shows information on these two offers: ALSALAM Company 30 No. Units Period Price Fine NOOR Company 20 60 Days $100 $15 40 Days $130 $20 Table (2) show information about the two Production Units of XYZ-Company (in hours) Units 8888888888 Production unit A Labor 1 Labor 2 Labor 3 Labor 4 Labor 5 70 89 78 90 101 73 81 73 83 99 64 74 67 78 94 59 68 61 68 55 63 56 63 84 49 54 51 56 81 46 49 48 51 78 40 43 40 45 32 39 36 40 69 24 31 29 33 62 Production Unit B Units Labor 1 Labor 2 Labor 3 Labor 4 Labor 5 10 100 90 98 120 86 20 96 83 94 117 81 30 92 78 90 113 76 40 89 68 88 109 72 50 85 63 85 105 61 60 80 56 79 101 52 70 75 51 74 98 47 80 70 45 69 95 41 65 40 64 91 37 100 600 33 58 87 30 NOOR ALSALAM Company Company $60 $90 $500 Production cost Fixed cost The XYZ-company has received offers for subcontracting from NOOR-Company's and AL- SALAM company. Table (1) shows information on these two offers: ALSALAM Company 30 No. Units Period Price Fine NOOR Company 20 60 Days $100 $15 40 Days $130 $20 Table (2) show information about the two Production Units of XYZ-Company (in hours) Units 8888888888 Production unit A Labor 1 Labor 2 Labor 3 Labor 4 Labor 5 70 89 78 90 101 73 81 73 83 99 64 74 67 78 94 59 68 61 68 55 63 56 63 84 49 54 51 56 81 46 49 48 51 78 40 43 40 45 32 39 36 40 69 24 31 29 33 62 Production Unit B Units Labor 1 Labor 2 Labor 3 Labor 4 Labor 5 10 100 90 98 120 86 20 96 83 94 117 81 30 92 78 90 113 76 40 89 68 88 109 72 50 85 63 85 105 61 60 80 56 79 101 52 70 75 51 74 98 47 80 70 45 69 95 41 65 40 64 91 37 100 600 33 58 87 30 NOOR ALSALAM Company Company $60 $90 $500 Production cost Fixed costStep by Step Solution
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