Example - Product Mix - Template

xlsx

School

California State University, East Bay *

*We aren’t endorsed by this school

Course

630

Subject

Industrial Engineering

Date

Oct 30, 2023

Type

xlsx

Pages

Uploaded by AmbassadorBeaver2154

The PC Tech company assembles and then tests coming month, the company wants to decide ho computers are in inventory from the previous m changed after this month, the company doesn’t believes the most it can sell this month are 600 XP sells for $450. The cost of component parts f for assembly and testing. There are at most 10,0 Each labor hour for assembling costs $11 and ea five hours for assembling and one hour for testin two hours for testing. PC Tech wants to know ho and test) to maximize its net profit, but it canno not want to produce more than it can sell.

two models of computers, Basic and XP. For ow many of each model to assemble and the month, and because these models are going t t want to hold any inventory after this month Basics and 1200 XPs. Each Basic sells for $30 for a Basic is $150; for an XP it is $225. Labor 000 assembly hours and 3000 testing hours ach labor hour for testing costs $15. Each Ba ng, and each XP requires six hours for assem ow many of each model it should produce (a ot use more labor hours than are available, a

Assembling and Testing Computers Cost per labor hour Cost per labor hour Labor hours per unit Labor hours per unit Cost of component parts Cost of component parts Selling price Selling price Maximum sales Maximum sales Labor hours available Labor hours available Number produced Number produced Labor hours used Labor hours used Maximiz profit Maximiz profit Unit margin Unit margin <= <=

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

g e g e m m ze t ze t If the BigPicture add-in is loaded, run its slideshow to see explanations of this diagram.

Assembling and testing computers Cost per labor hour assembling $11 Cost per labor hour testing $15 Inputs for assembling and testing a computer Basic XP Labor hours for assembly 5 6 Labor hours for testing 1 2 Cost of component parts $150 $225 Selling price $300 $450 Unit margin $80 $129 Assembling, testing plan (# of computers) Basic XP Number to produce Maximum sales 600 1200 Constraints (hours per month) Hours used Hours available Labor availability for assembling 10000 Labor availability for testing 3000 Net profit ($ this month) Basic XP Total A B C D E 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24