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Tokyo Spas is developing a production plan in an attempt to maximize profits from the manufacture of three models of hot tubs -- Standard, Classic, and Deluxe -- this season.

These products are expected to yield estimated profits of $400, $345, and $600 each, respectively. Each hot tub produced requires the following primary resources: labor, piping, and pumps. Specifically, the Standard model requires approximately 15.5 labor hours, 14.5 feet of piping, and 1 pump per hot tub.

Each Classic model hot tub requires around 10.5 labor hours, 20.0 feet of piping, and 1 pump, while the Deluxe model requires approximately 12.0 labor hours, 22.0 feet of piping, and 2 pumps per hot tub. Over the next 3 months, it appears that there will be 2,650 labor hours available, and Toyko has recently purchased 3,450 feet of piping 231 pumps that must meet their needs during these three months (i.e., this production season).

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M91425363

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