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TO: Management Scientist (student) FROM: Production Manager, the Dynamo Company RE: How many of each type of inverter should we produce to maximize profit?
TO: Management Scientist (student) FROM: Production Manager, the Dynamo Company RE: How many of each type of inverter should we produce to maximize profit? Background The Dynamo Company produces two types of power inverters, square and sine wave. Most of the components are readily available however recently there has been limited quantities of plug blocks and capacitors. Production Each sine wave inverter requires 1 plug block and each square wave speaker requires 2 plug blocks. Both of the inverters require 1 capacitor per unit. Purchasing For the manufacturing period in question, next week, there are 70 capacitors and 200 plug blocks available. Capacitors cost $13 each and plug blocks cost $12 each. Accounting The accountants estimate the sales price for each sine wave inverter as $90 and for each square wave inverter as $115. They also estimate that all of the other components for a sine wave inverter as $50 and $65 for a square wave inverter. Marketing There is an existing contract for 20 square wave inverters. Edit View Insert Format Tools Table 12pt Paragraph BIUA
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