Question

A computer plant produces mice, keyboards and flash drives. A mouse has a profit of $8.00/unit,...

A computer plant produces mice, keyboards and flash drives. A mouse has a profit of $8.00/unit, and to produce it takes 0.4 hours of labor and .04 hours of machine time. A keyboard has a profit of $11.00/unit, and to produce it takes 0.3 hours of labor and .09 hours of machine time. A flash drive has a profit of $10.00/unit, and to produce it takes 0.25 hours of labor and .04 hours of machine time. Each month, a total of 13,000 hours of labor and 2,500 hours of machine time are available. The maximum monthly demand is 14,000 mice, 24,000 keyboards and 13,000 flash drives. How many of each should the company make each month to maximize its profit and what is that maximum profit? Include your spreadsheet with any formulas noted. Also include a list of the constraints you used.

Homework Answers

Answer #1

Total availabe machine time = 2500 hours and totla available Labor hours =13000. the main constraint is machine hours. Machine hours required for 1 unit of mouse = 0.4 hour and 1 unit of Flash drive also 0.4 hour. the lowest maximum demand is for Flash drives is 13000 units, if the plant trying to produce maximum of Flash drive, it required 13000 x 0.4 = 5200 hour. But the plant has only 2500 hours are available, so the the maximum number of flash to produce are 2500/0.4 = 6250 units.

the plant can produce 6250 units Flash drives only with the available machine 2500hours. maximum profit = 6250 x10 = $s 62500.

Here the only constraint is machine hours, if machine hours available are much more, labor hours also will be a constrint

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