Q1) Production Planning. Bogard Corporation makes 3 types of bookcases, which it sells to large office supply companies. Production of each bookcase needs 2 machine operations, trimming and shaping, followed by assembly that includes inspection and packaging. All 3 types require .4 hour of assembly time, but machining operations have various processing times, as shown here, in hours per unit:
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|
Standard
|
Narrow
|
Wide
|
|
Trimmer
|
0.2
|
0.4
|
0.6
|
|
Shaper
|
.06
|
0.2
|
0.5
|
Each model is available 150 hours per month, and present size of assembly department gives capacity of 600 hours. Each bookcase produced yields unit profit contribution as follows:
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|
Standard
|
Narrow
|
Wide
|
|
Profit
|
$8
|
$6
|
$10
|
Compute the optimal production quantities for the company?
Find out the pattern in the optimal allocation?