6. Optimal Production For the three standard products (A, B and C) a machine is necessary. Its capacity is limited to 1.500 machine hours. The following table shows the max production per product and its machine time in use. Capacity (min) max. amount of production (piece) A 15 B 5 3.500 3.000 8 5.000 Furthermore, product A and B show a contribution margin of € 5,- per piece, while product C shows a CM of only € 2,-. Required: What is the optimal program of production (follow the in-class exercise for wedding cakes (relative CM)).

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter5: Network Models
Section5.3: Assignment Models
Problem 14P
icon
Related questions
Question
100%
6. Optimal Production
For the three standard products (A, B and C) a machine is necessary. Its capacity is limited to
1.500 machine hours. The following table shows the max production per product and its
machine time in use.
Capacity (min)
max. amount of production (piece)
A
15
3.500
B
5
3.000
с
8
5.000
Furthermore, product A and B show a contribution margin of € 5,- per piece, while product C
shows a CM of only € 2,-.
Required: What is the optimal program of production (follow the in-class exercise for
wedding cakes (relative CM)).
Transcribed Image Text:6. Optimal Production For the three standard products (A, B and C) a machine is necessary. Its capacity is limited to 1.500 machine hours. The following table shows the max production per product and its machine time in use. Capacity (min) max. amount of production (piece) A 15 3.500 B 5 3.000 с 8 5.000 Furthermore, product A and B show a contribution margin of € 5,- per piece, while product C shows a CM of only € 2,-. Required: What is the optimal program of production (follow the in-class exercise for wedding cakes (relative CM)).
Expert Solution
steps

Step by step

Solved in 3 steps with 3 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,