The Holt Million Corporation’s plant manufactures two different products: X and Y. The plant has three different machines: A, B, and C. Each performs different tasks and can work on only one unit of material at a time. Details for each product are shown in the table below: Product X Y Demand Per Week 200 units 100 units Selling Price $150 $160 Machine Operation Required A, B, C B, B, C Operation Times in Minutes 20, 15, 15 15, 15, 15 Raw Materials Needed RM-1, RM-2 RM-2, RM-3 Raw Materials Costs RM-1 = $40/unit, RM-2 or RM-3 = $20/unit Each product uses raw materials with costs as shown in the above table where the processing times and the machine required for each operation are also shown. Each machine is available 4,800 minutes per week. There are no system foul-ups. Demand is deterministic (i. e., no uncertainty). Operating expenses, including labor (but excluding raw materials) total $12,000 per week. Assuming market demand is a constraint, how much additional profit can be made by relaxing this constraint? Please justify your answer.

The Holt Million Corporation’s plant manufactures two different products: X and Y. The plant has three different machines: A, B, and C. Each performs different tasks and can work on only one unit of material at a time. Details for each product are shown in the table below: Product X Y Demand Per Week 200 units 100 units Selling Price $150 $160 Machine Operation Required A, B, C B, B, C Operation Times in Minutes 20, 15, 15 15, 15, 15 Raw Materials Needed RM-1, RM-2 RM-2, RM-3 Raw Materials Costs RM-1 = $40/unit, RM-2 or RM-3 = $20/unit Each product uses raw materials with costs as shown in the above table where the processing times and the machine required for each operation are also shown. Each machine is available 4,800 minutes per week. There are no system foul-ups. Demand is deterministic (i. e., no uncertainty). Operating expenses, including labor (but excluding raw materials) total $12,000 per week. Assuming market demand is a constraint, how much additional profit can be made by relaxing this constraint? Please justify your answer.

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

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Product	X	Y
Demand Per Week	200 units	100 units
Selling Price	$150	$160
Machine Operation Required	A, B, C	B, B, C
Operation Times in Minutes	20, 15, 15	15, 15, 15
Raw Materials Needed	RM-1, RM-2	RM-2, RM-3
Raw Materials Costs	RM-1 = $40/unit, RM-2 or RM-3 = $20/unit