cost $ 50,000 for toy 1 to set up facilities and $ 80,000 for toy 2. Once these costs were covered, there would be a unit profit of $ 10 for toy 1 and $ 15 for toy 2. The company has two plants that can produce these toys. However, to avoid duplication of setup costs, only one of them will be used, and the choice depends on maximizing profit. For administrative reasons, the same plant will be used for both new toys if both are produced. Toy 1 can be produced at a rate of 50 units per hour in Plant 1 and 40 per hour in Plant 2. Toy 2 can be produced at a rate of rate of 40 units per hour on plant 1 and 25 per hour on plant 2 Plants 1 and 2 have 500 and 700 hours of production available, respectively
The Toys-R-4-U company has developed two new toys for possible inclusion in the product line next Christmas season. It would cost $ 50,000 for toy 1 to set up facilities and $ 80,000 for toy 2. Once these costs were covered, there would be a unit profit of $ 10 for toy 1 and $ 15 for toy 2. The company has two plants that can produce these toys. However, to avoid duplication of setup costs, only one of them will be used, and the choice depends on maximizing profit. For administrative reasons, the same plant will be used for both new toys if both are produced. Toy 1 can be produced at a rate of 50 units per hour in Plant 1 and 40 per hour in Plant 2. Toy 2 can be produced at a rate of rate of 40 units per hour on plant 1 and 25 per hour on plant 2 Plants 1 and 2 have 500 and 700 hours of production available, respectively, before Christmas, that can be used to produce these toys. These toys will continue to be manufactured after Christmas. Therefore, the problem is to determine how many units (if manufactured) of each new toy must be produced before Christmas in order to maximize total profit. A) Formulate an EMP model for this problem.
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