Constrained Optimization: One Internal Binding Constraint Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins of $200 and $400, respectively. Assume initially that Patz can sell all that is produced of either component. Part A requires two hours of assembly, and B requires five hours of assembly. The firm has 200 assembly hours per week. Required: 1. Express the objective of maximizing the total contribution margin subject to the assembly-hour constraint. Objective function: Max Z = $200 A + $400 B Subject to: fill in the blank A + fill in the blank B ≤ fill in the blank 2. Identify the optimal amount that should be produced of each machine part. If none of the components should be produced, enter "0" for your answer. Component A fill in the blank units Component B fill in the blank units
Constrained Optimization: One Internal Binding Constraint Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins of $200 and $400, respectively. Assume initially that Patz can sell all that is produced of either component. Part A requires two hours of assembly, and B requires five hours of assembly. The firm has 200 assembly hours per week. Required: 1. Express the objective of maximizing the total contribution margin subject to the assembly-hour constraint. Objective function: Max Z = $200 A + $400 B Subject to: fill in the blank A + fill in the blank B ≤ fill in the blank 2. Identify the optimal amount that should be produced of each machine part. If none of the components should be produced, enter "0" for your answer. Component A fill in the blank units Component B fill in the blank units
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 3CE: Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins...
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Constrained Optimization: One Internal Binding Constraint
Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins of $200 and $400, respectively. Assume initially that Patz can sell all that is produced of either component. Part A requires two hours of assembly, and B requires five hours of assembly. The firm has 200 assembly hours per week.
Required:
1. Express the objective of maximizing the total contribution margin subject to the assembly-hour constraint.
Objective function: Max Z = $200 A + $400 B
Subject to: fill in the blank A + fill in the blank B ≤ fill in the blank
2. Identify the optimal amount that should be produced of each machine part. If none of the components should be produced, enter "0" for your answer.
| Component A | fill in the blank | units |
| Component B | fill in the blank | units |
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