Labors Hours Required (Hours/Unit) Department Product 1 Product 2 Hours Available A 1 0.35 100 B 0.3 0.2 36 C 0.2 0.5 50 Profit Contribution/Unit 30 15 X1 X2 Production Constraints Used Available Dept A Hours Dept B Hours Dept C Hours Objective: Profit 1) How many units of product 1 should Hartman produce to get the most profit? 2) How many units of product 2 should Hartman produce to get the most profit? 3) How much profit will Hartman make if they produce the optimal number of product 1 and product 4) In computing the profit contribution per unit, management does not deduct labor costs because they are considered fixed for the upcoming planning period. However, suppose that overtime can be scheduled in some of the departments. Which departments would you recommend scheduling for overtime? 5) How much would you be willing to pay per hour of overtime in each department?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question

Labors Hours Required (Hours/Unit)
Department	Product 1	Product 2	Hours Available
A	1	0.35	100
B	0.3	0.2	36
C	0.2	0.5	50

Profit Contribution/Unit	30	15
	X₁	X₂
Production

Constraints	Used		Available
Dept A Hours
Dept B Hours
Dept C Hours

Objective:
Profit

1) How many units of product 1 should Hartman produce to get the most profit?

2) How many units of product 2 should Hartman produce to get the most profit?

3) How much profit will Hartman make if they produce the optimal number of product 1 and product

4) In computing the profit contribution per unit, management does not deduct labor costs because they are considered fixed for the upcoming planning period. However, suppose that overtime can be scheduled in some of the departments. Which departments would you recommend scheduling for overtime?

5) How much would you be willing to pay per hour of overtime in each department?

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