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The Strollers-To-Go company makes lightweight collapsible strollers for three groups of children. The TiniTote is designed specifically for newborns who require extra neck support. The
The Strollers-To-Go company makes lightweight collapsible strollers for three groups of children. The TiniTote is designed specifically for newborns who require extra neck support. The ToddleTote is for toddlers up to 30 pounds. Finally, the company produces the TitanTote for toddlers up to 60 pounds. STG is determining it production requirements of each stroller type for the upcoming production period. STG want to utilize its operations to maximize profit during the production period. The marketing department has forecast the following maximum demand for each of the strollers during production period: TiniTote 180, TitanTote 70, and ToddleTote 160. STG sells the TiniTote for $133.75, the TitanTote for $172.50, and the ToddleTote for $136.00. Production policy is to produce at least 50% of the forecast demand for each product. Policy also mandates that Toddletotes be no more that 40% of total production by volume. The production department as estimated that the material costs for TiniTote, ToddleTote, and TitanTote are $14,$16, and $15.50 per unit, respectively. The strollers are processed through fabrication, sewing, and assembly workstations. The metal and plastic frames are made in the fabrication station. The fabric seats are cut and stitched together in the sewing station. Finally, the frames are put together with the seats in the assembly station. During the upcoming production period STG has 620 hours of fabrication available at a cost of $18.25/ hour. The sewing station has 500 hours available at $18.50 per hour. The assembly station has 480 hours available at $18.75 per hour. The standard processing rate for the TiniTotes is 3 hours of fabrication, 2 hours of sewing, and 1 hour of assembly. TitanTotes require 4 hours of fabrication, 1 hour of sewing, and 3 hours of assembly. ToddleTotes require 2 hours at each station
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