Question

In: Statistics and Probability

JOBCO produces two products on two machines. A unit of product 1 requires 2 hours on...

JOBCO produces two products on two machines. A unit of product 1 requires 2 hours on machine 1 and 1 hour on machine 2. For product 2, a unit requires 1 hour on machine 1 and 3 hours on machine 2. The revenues per unit of products 1 and 2 are $30 and $20, respectively. The total daily processing time available for each machine is 8 hours. Letting x1 and x2 represent the daily number of units of products 1 and 2, respectively, the LP model is given as

max z=30x1+20x2

s.t.

2x1+x2 ≤8

x1+3x2 ≤8

x1,x2 ≥ 0

equation to be solved using simplex method.

If JOBCO can increase the capacity of both machines, which machine should receive higher priority?

I need it to be solved in details using shadow price and delta in the right hand side.

Solutions

Expert Solution


Related Solutions

1. JOBCO produces two products on two machines. A unit of product 1 requires 2 hours...
1. JOBCO produces two products on two machines. A unit of product 1 requires 2 hours on machine 1 and 1 hour on machine 2. For product 2, a unit requires 1 hour on machine 1 and 3 hours on machine 2. The revenues per unit of products 1 and 2 are $30 and $20, respectively. The total daily processing time available for each machine is 8 hours. Letting x1 and x2 represent the daily number of units of products...
Bellingham Company produces a product that requires 2 standard direct labor hours per unit at a...
Bellingham Company produces a product that requires 2 standard direct labor hours per unit at a standard hourly rate of $21.00 per hour. If 2,700 units used 5,600 hours at an hourly rate of $19.95 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct labor rate variance $ b. Direct...
1. Direct Labor Variances Bellingham Company produces a product that requires 4 standard hours per unit...
1. Direct Labor Variances Bellingham Company produces a product that requires 4 standard hours per unit at a standard hourly rate of $22.00 per hour. If 5,000 units required 20,800 hours at an hourly rate of $20.90 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) total direct labor cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct labor...
Glavine & Co. produces a single product, each unit of which requires three direct labor hours...
Glavine & Co. produces a single product, each unit of which requires three direct labor hours (DLHs). Practical capacity (for setting the factory overhead application rate) is 60,000 DLHs, on an annual basis. The information below pertains to the most recent year: Standard direct labor hours (DLHs) per unit produced 3.00 Practical capacity, in DLHs (per year) 60,000 Variable overhead efficiency variance $ 20,000 unfavorable (U) Actual production for the year 17,000 units Budgeted fixed manufacturing overhead $ 1,200,000 Standard...
ABC Firm produces two products.  Product A is a high-end product that requires more direct labour and...
ABC Firm produces two products.  Product A is a high-end product that requires more direct labour and better materials. Product A sells for $150 per unit.  Product B is sold in vast quantities and is made in huge production runs. Product B sells for $60 per unit.  At the beginning of 2016, ABC made the following estimations and at the end of the year, the following actual amounts were recorded.                                                         Estimates                               Actuals                   Sales of Product A                   6,000 units                          6,150 units               Sales of Product B                  82,300 units                        81,400 units...
Qubix Systems produces two different products, Product A, which sells for $250 per unit, and Product...
Qubix Systems produces two different products, Product A, which sells for $250 per unit, and Product B, which sells for $400 per unit, using three different activities: Design, which uses Engineering Hours as an activity driver; Machining, which uses machine hours as an activity driver; and Inspection, which uses number of batches as an activity driver. The cost of each activity and usage of the activity drivers are as follows: Cost Usage by Product A Usage by Product B Design...
Walnut Systems produces two different products, Product A, which sells for $123 per unit, and Product...
Walnut Systems produces two different products, Product A, which sells for $123 per unit, and Product B, which sells for $205 per unit, using three different activities: Design, which uses Engineering Hours as an activity driver; Machining, which uses machine hours as an activity driver; and Inspection, which uses number of batches as an activity driver. The cost of each activity and usage of the activity drivers are as follows:     Cost Usage by Product A Usage by Product B Design...
Fremont Systems produces two different products, Product A, which sells for $1,000 per unit, and Product...
Fremont Systems produces two different products, Product A, which sells for $1,000 per unit, and Product B, which sells for $2,000 per unit, using three different activities: Design, which uses Engineering Hours as an activity driver; Machining, which uses machine hours as an activity driver; and Inspection, which uses number of batches as an activity driver. The cost of each activity and usage of the activity drivers are as follows:    Cost Usage by Product A Usage by Product B Design...
Walnut Systems produces two different products, Product A, which sells for $135 per unit, and Product...
Walnut Systems produces two different products, Product A, which sells for $135 per unit, and Product B, which sells for $192 per unit, using three different activities: Design, which uses Engineering Hours as an activity driver; Machining, which uses machine hours as an activity driver; and Inspection, which uses number of batches as an activity driver. The cost of each activity and usage of the activity drivers are as follows:     Cost Usage by Product A Usage by Product B Design...
A manufacturing company produces two products, which has the following information: Characteristic Product 1 Product 2...
A manufacturing company produces two products, which has the following information: Characteristic Product 1 Product 2 Profit/unit $4 $2 Dept. A hours/unit 1 1 Dept. B hours/unit 2 4 Last month’s production schedule used 400 hours of labor in department A and 950 hours of labor in department B. The management has been experiencing problems during the past six months because of variable monthly department workload amounts. Management would like to develop a production schedule for the coming month that...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT