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Tucker Inc. needs to produce 1,000 Tucker automobiles. The company has four production plants. Due to differing workforces, technological advances, raw material consumption, and
Tucker Inc. needs to produce 1,000 Tucker automobiles. The company has four production plants. Due to differing workforces, technological advances, raw material consumption, and so on, the cost and requirement for producing one car varies with the plant. This is summarized in the following table: Plant Cost (in $1,000s) Labor Material 1 2 3 2 15 10 9 7 4 5 3 4 5 Their labor contract requires that at least 400 cars be produced at plant 3. There are 3,300 hours of labor and 4,000 units of material that can be allocated to the four plants. Model and solve this problem. Model and solve this problem, generate a sensitivity report, and answer the following questions. 13. How much will it cost to produce one more car? (in thousands of dollars) 14. What is the most you would pay (the break-even number) for one additional unit of raw material? (in thousands of dollars) 15. How much is the labor contract costing us per car? (in thousands of dollars) 16. A new plant is being designed that will use only one unit of workers and four units of raw material. For it to be beneficial to produce there, its production cost per car would have to be below what number? (in thousands of dollars)
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