Question

In: Accounting

A community playhouse needs to determine the​ lowest-cost production budget for an upcoming show. They have...

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 ​$__.

Solutions

Expert Solution

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


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