Production Planning: The Bogard Corporation produces three types of book cases (standard, narrow, wide), which it sells to large office supply companies. The production of each bookcase requires two machine operations; trimming and shaping, followed by assembly, which includes inspection and packaging. All three types require 0.4 hours of assembly, but the machining operations have different processing times, as shown below, in hours per unit: Standard Narrow Wide Trimmer 0.2 0.4 0.6 Shaper 0.6 0.2 0.5 Each machine (Trimmer and Shaper) is available 475 hours per month, and the current size of the assembly department provides capacity of 600 hours. Each bookcase produced yields a unit profit contribution as follows: Standard Narrow Wide Profit $8 $6 $10 a. What are the optimal production quantities for the company? b. If company’s marketing department requires each type of book cases must make up at least 20 percent of the total units produced, then what would be the new product mix? Show the result in your excel file...please help me
Answers
Step-by-step explanation:
The Bogard Corporation produces three types of bookcases, which it sells to large office supply companies. The production of each bookcase requires two machine operations, trimming and shaping, followed by assembly, which includes inspection and packaging. Each type requires 0.4 hours of assembly time, but the machining operations have different processing times, as shown in the table below (in hours per unit). Each machine is available for 150 hours per month, and the current size of the assembly department provides capacity of 200 hours. Each bookcase produced yields a unit profit contribution as shown below. Standard Narrow Wide
Trimmer 0.2 0.4 0.6
Shaper 0.6 0.2 0.5
Profit $8 $6 $10
Answer:
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