Project #71865 - Intro to Management Science

Hamilton is a precision machining and manufacturing company that produces a series of high performance

components. Management would like your recommendations on how many products of each type should we

produce each week in order to maximize profit? Please post your recommendation in the eLearning drop

box no later than midnight 22 May 2015. The following departments have provided helpful information.

Accounting

Overhead costs are estimated to be $3.00/unit for either product. Product 1 retails for $24.05 each and product

2 sells for $17.90 each.

Manufacturing

Each product must pass through a lathe and milling process. Both the lathe and the polishing machines are

each available for 40 hours per week. Two operators, one for polishing and one for milling, are required.

The labor costs for operators is $24.00/hour.

Each product 1 spends 5 minutes at the lathe, and 7 minutes at the milling machine. Each product 2 spends 5

minutes at the lathe, 6 minutes at the milling machine.

Each product is made from an stainless steel alloy that costs $20.00/roll. Product 1 requires 1/4 of a roll

while product 2 requires only 1/8 of a roll.

Logistics

Shipping costs are $6.00/unit for product 1 and $3.00/unit for product 2. The shipping budget is only $2,000.

Legal

There is an existing contract with one of Hamilton’s wholesalers for 150 units of product 1.

_______________________________________________________________________________

Bulova is a small manufacturing concern that is operated for many years producing two primary products.

The management would like your recommendation on how many products of each type should we produce

each week in order to maximize profit? Please post your recommendation in the eLearning drop box no

later than midnight 22 May 2015. The following departments have provided helpful information.

Accounting

The profit for product 1 is $6.00/product while the profit for product 2 is $5.00/unit.

Procurement

Two raw materials are required for products 1 and 2. After accounting for spoilage only 49 kg of material

1 is available while 45 kg of material 2 is available. Both products require 7 kg of material one. Product 1

requires 5 kg of material 2 while product 2 requires 9 kg of material 2.

Management

Management would like to produce at least 2 of each product. The following linear programming model

has been proposed by the UWF business intern.

X1 = # of product 1 manufactured and sold

X2 = # of product 2 manufactured and sold

Max 6X1 + 5X2 Maximize profit

S.T.

1) 7X1 + 7X2  49 Material 1 supply (kg)

2) 5X1 + 9X2  45 Material 2 supply (kg)

3) 1X1  2 product 1 minimum

4) 1X2  2 product 2 minimum

5) X1, X2  0 Non-negativity

 

Subject Business
Due By (Pacific Time) 05/22/2015 11:59 pm
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