Ask Operation Management Expert

A certain company has three plants with an excess in their monthly production capacity. All three can manufacture a new product that management wants to introduce to the market. The product can be made in three sizes: large, medium and small, which will give a net profit of $ 540, $ 490 and $ 420, respectively. The time it takes to manufacture each type of product is 2, 1.5 and 1 hour for large, medium and small products respectively. Each plant has capacity of 1300, 2000 and 1500 h. per month for the manufacture of this new product. The maximum estimated demands for each type of product are 1200, 1350 and 1600 products of each large, medium and small size respectively. As part of a market strategy, it is recommended that at least 50% of the medium product be produced, 70% of the small product and 60% of the large product with respect to its estimated demand. An important point is that the company makes its deliveries every month so that the production is stored during the previous period of being sent to its points of sale. Given the characteristics of the product this can not be stowed. In this sense it is known that each large-sized product occupies 7 m2 of space, 5m2 the medium and 3m2 the boy. There are 7,000, 5500 and 4000 m2 in each floor respectively. Additionally, the management does not want to overload one of the plants with respect to the others, for that reason it has managed to distribute the production equally. To achieve this, you can obtain the percentage of capacity assigned between the available capacity in hours in each sea floor, the same for all.

a) It is requested that the production commission that formulates a model to determine the units of each size must be carried out in each plant to enforce what is requested.

b) Determine the range of optimality for the utility of the medium product.

c) Determine the feasibility range for the minimum expected demands. Each of the following questions is independent and is answering the original problem.

d) If the sale price is $ 590, $ 450, $ 420 for each large, medium and small product, respectively, that is made on the first floor; $ 610, $ 430, $ 420 for each large, medium and small product, respectively, which is done in the 2nd floor and $ 620, $ 410, $ 400 for each large, medium and small product respectively, which is done in the 3rd floor. And yes I know that the manufacturing cost of each large, medium and small product is $ 550, $ 380 and $ 350 respectively. What would be the new answer? If there is. Comment your result

e) Price cheaper than a consultant who charges you for the number of additional pieces of demand you can get. Explain

f) If the maximum demands are expected by the type of product as its solution would be affected. Comment your result

g) Would you change your decision if you now have the restriction of a minimum production and it is considered that the most important demands in 1600, 1500 and 1700 respectively? Comment your result

h) Consider what it would be worth to think about a capacity expansion project available in terms of hours at the plants? Explain

i) Assuming that the company has the capacity of any object that prevents reaching the maximum expected demand. What is the minimum of that resource that is required to achieve it?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M93095430

Have any Question?


Related Questions in Operation Management

Conflictdefine functional versus dysfunctional conflict in

Conflict Define functional versus dysfunctional conflict in a work group and explain how you can increase functional conflict and decrease dysfunctional conflict. Develop a response that includes examples and evidence to ...

For this assignment you will need to find 2 articles in

For this assignment, you will need to find 2 articles in business that can help describe what are IT strategic initiative being undertaken by an organization are like. Choose a different organization for each of the arti ...

Coping with problems joe is a little nervous he has just

Coping With Problems Joe is a little nervous. He has just been transferred from another plant to take over a production line. Production is down and there is a serious problem with absenteeism. To make matters worse, the ...

Over 30 years ago michael porter identified a holistic

Over 30 years ago Michael Porter identified a holistic approach to understanding how competitive forces shape strategy. He posited that the only way to truly insulate an organization from underlying economic volatility i ...

You are the contracting officer for an air-to-ground

You are the contracting officer for an air-to-ground missile development program. A contract for pre-production models of the missile was awarded by your predecessor and the contractor is behind schedule. In a program me ...

The ikea case provides an excellent opportunity to apply

The IKEA case provides an excellent opportunity to apply strategic management concepts to a large privately-held company that is expanding into India. IKEA is a Netherlands-based Swedish company with a presence in 44 cou ...

Can you answer for me the following questions about social

Can you answer for me the following questions about social loafing and the three main causes of free-riding. 1. Give a description of the phenomenon of social loafing. 2. Give a description of the phenomenon of free-ridi ...

1 analyzing the bridgestonefirestone and ford motor company

1. Analyzing the Bridgestone/Firestone and Ford motor company, is it sufficient to use the ISO/QS 9000 standards as the main basis of vendor/product selection? 2. What position to these cars company ( 1. Volkswagen, 2. F ...

Research the effect of primary and secondary seat belt laws

Research the effect of primary and secondary seat belt laws on the occurrence of motor-vehicle injuries and fatalities. Explain how epidemiologic studies influenced the development of current seat belt laws. Describe how ...

Please provide a brief paragrap of the key takaways from

Please provide a brief paragrap of the key takaways from each of the following topics: Designing Clear Visuals in business reports Designing Successful Documents and Websites Writing Winning Proposals

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As