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 will achieve the following goals:
Goal 1: Use a maximum of 400 hours of labor in department A.
Goal 2: Use a maximum of 950 hours of labor in department B.
Goal 3: Earn a profit of at least $1600.
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