Slixtrix Conversions, located in Waldo, Florida specializes in conversions of pick-up trucks and vans. In particular, they do a very good business in their signature line of each.
The business has three production shops which, using good project scheduling skills, work on the vehicles simultaneously. The shops are:
• preparation
• upholstery
• electric/electronics.
The company nets $5000 for each truck and $6000 for each van produced and sold. The work requirements for each, in hours, and personnel available are given in the table below. Personnel work 8 hours per day, five days per week on the conversions.
Shop Trucks Vans Personnel
preparation 8 12 10
upholstery 10 8 8
electrical 12 16 12
The company has standing orders for 12 trucks and 10 vans per week, and is able to obtain parts for only 20 vans per week.
a. How many trucks and vans should they produce each week to maximize profit and remain within the stated bounds?
b. What shops or other constraints determine the optimum solution?
c. Are any shops over staffed? If so which ones? If people from an overstaffed shop were able to work in another shop, would transferring any from that shop improve profitability? (How many, from where, to where?)