3. Suppose you Donald Inc. is managing production of three products (X, Y, Z) in threedifferent locations (A, B, C). In each location facilities can run up to 8 hours per day.The table below provides data about productivity per hour at each location.Production per hourPricelocation Alocation Blocation CProduct X213200Product Y322180Product Z31150Donald Inc. is renting the production space in each location. Current rent agreementsallow for up to 250, 300, and 250 days of production in locations A, B, and Crespectively.a) Determine the optimal product mix of X, Y, and Z and production locations.b) If Donald Inc. wanted to rent additional days of production where would they be mostlikely to expand?c) What is the maximum they would be willing to pay to rent another day at eachlocation?d) What are the ranges for each of the location rent constraints within which thesolutions will not change?

Objective Functions and Constraints: Based on the given details, the objective…

Answered: 3. Suppose you Donald Inc. is managing…

Management, Loose-Leaf Version

13th Edition

ISBN:9781305969308

Author:Richard L. Daft

Publisher:Richard L. Daft

Chapter19: Managing Quality And Performance

Section: Chapter Questions

Problem 10DQ

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In December, General Motors produced 6,600 customizedvans at its plant in Detroit. The labor productivity at thisplant is known to have been 0.10 vans per labor-hour during thatmonth. 300 laborers were employed at the plant that month.a) How many hours did the average laborer work that month?b) If productivity can be increased to 0.11 vans per laborhour,how many hours would the average laborer work thatmonth?
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