In: Accounting
A community playhouse needs to determine the lowest-cost production budget for an upcoming show. They have to determine which set pieces to construction and which to rent. The organization has only two weeks to construct the set. The theater has two carpenters who work up to 12 hours a week, each at $12 an hour. Additionally, the theater has a scenic artist who can work 15 hours per week to paint as needed at $14 per hour. The set needs 20 flats (walls), two hanging drops, and three wooden tables (props). The number of hours required for each piece for carpentry and painting is shown below. Flats, hanging drops, and props can also be rented at a cost of $75, $500, and $400 each, respectively. How many of each unit should be built by the theater and how many should be rented to minimize total cost?
Carpentry |
Painting |
||
---|---|---|---|
Flats |
0.5 |
2.0 |
|
Hanging Drops |
3.0 |
12.0 |
|
Props |
2.0 |
4.0 |
The optimal integer solution is to build __ flat(s) and rent __ flat(s); build __hanging drop(s) and rent __hanging drop(s); build __prop(s) and rent__ prop(s). This solution gives the ▼(minimum, maximum) cost, which is $__.
Firstly, the decision has to be taken whether it has to be taken on rent or to be constructed. Since, there are both time as well as workforce constraints we have to decide whether it would be constructed or to be taken on rent.
Particulars | Flats | Hanging Drops | Props |
Taken on rent | 75 | 500 | 400 |
If constructed | |||
Carpenter Cost | 6 | 36 | 24 |
Painting Cost | 28 | 168 | 56 |
Total Cost (if Constructed) | 34 | 204 | 80 |
Savings | 41 | 296 | 320 |
Since, in all the above coonstruction leads to lowest cost, we have to go for construction.
Computation of Carpentary Hours required (If all are constructed) | |||
Particulars | No of units required | Hrs required per Unit | Total Hours |
Flats | 20 | 0.5 | 10 |
Hanging Drops | 2 | 3 | 6 |
Props | 3 | 2 | 6 |
Total | 22 |
Available is 12hrs*2person*2weeks = 48 Hours. So, this is not a constraint
Computation of Painting Hours required (If all are constructed) | |||
Particulars | No of units required | Hrs required per Unit | Total Hours |
Flats | 20 | 2 | 40 |
Hanging Drops | 2 | 12 | 24 |
Props | 3 | 4 | 12 |
Total | 76 |
Available is 15hrs*1person*2weeks = 30hrs. Therefore, painting is a constraint resource. So we have to use this constraints in a beneficial manner by computing per unit savings of constraint hour if construced. Computation is as follows:
Particulars | Flats | Hanging Drops | Props |
Savings if constructed | 41 | 296 | 320 |
Painting hours required/unit | 2 | 12 | 4 |
Savings / painting hour | 20.5 | 25 | 80 |
Ranking based on constraint | 3rd | 2nd | 1st |
Alloction of Constraint Resources
Total Painting Hours available | 30 |
Utilized for Props (4*3) | 12 |
Balance | 18 |
For Hanging Drops (N-1) | 12 |
Balance | 6 |
For Flats (2*3) | 6 |
Balance | 0 |
N-1. 18hrs cannot be sufficient for 2 hanging drops. So one can be constructed and the other will be taken on rent. For the balance of 6 Hrs, 3 flats can be constructed. Therefore Solution is as follows:
Particulars | Constructed | Rent | Cost for constructed units* | Cost for rented units* | Total cost |
Flats | 3 | 17 | 102 | 1275 | 1377 |
Hanging Drops | 1 | 1 | 204 | 500 | 704 |
Props | 3 | 0 | 240 | 0 | 240 |
Total Cost | 546 | 1775 | 2321 |
* per unit cost taken from 1st table.
Lowest Cost for upcoming show is $. 2321