Calculate the total number of machine-hours

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter4: Linear Programming Models
Section4.8: Data Envelopment Analysis (dea)
Problem 42P
icon
Related questions
icon
Concept explainers
Topic Video
Question

Calculate the total number of machine-hours needed to produce enough units to meet the sales demand for the two products.

Total number of machine hours

Marwick Innovations, Inc. produces exercise and fitness gear. Two of its newer products require a finishing process that can only be completed on machines that were recently purchased for this purpose. The machines have a maximum capacity of 10,500 machine hours, and no other products that the company makes use these machines.

Sarah Jacob, the company’s operations manager, is preparing the production schedule for the coming month and can’t seem to find enough machine time to produce enough units to meet the customer demand that the marketing department has included in the sales budget.

Michael Stoner, the company’s controller, has gathered the following information about the two products:

   
Dumbbell
Rack
 
Weight
Bench
Selling price per unit
    $50       $60  
Direct materials
    20       12  
Direct labor
    6       12  
Variable overhead
    3       6  
Fixed overhead
    5       10  
Profit per unit
    $16       $20  
Unit sales demand
    5,000       8,000  
Machine hours per unit
    0.75       1.5  
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Inventory management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
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,