The M–N plant manufactures two different products: M and N. Selling prices and weekly market demands are shown in the following diagram. Each product uses raw materials with costs as shown. The plant has three different machines: A, B, and C. Each performs different tasks and can work on only one unit of material at a time. Process times for each task are shown in the diagram. Each machine is available 2,500 minutes per week. There are no "Murphys" (major opportunities for the system to foul up). Setup and transfer times are zero. Demand is constant. Operating expenses (including labor) total a constant $12,000 per week. Raw materials are not included in weekly operating expenses. a. Which machine is the constraint in this plant? multiple choice Machine A Machine C Machine B Incorrect

Practical Management Science
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The M–N plant manufactures two different products: M and N. Selling prices and weekly market demands are shown in the following diagram. Each product uses raw materials with costs as shown. The plant has three different machines: A, B, and C. Each performs different tasks and can work on only one unit of material at a time. Process times for each task are shown in the diagram. Each machine is available 2,500 minutes per week. There are no "Murphys" (major opportunities for the system to foul up). Setup and transfer times are zero. Demand is constant. Operating expenses (including labor) total a constant $12,000 per week. Raw materials are not included in weekly operating expenses. a. Which machine is the constraint in this plant? multiple choice Machine A Machine C Machine B Incorrect
b. Which product mix provides the highest gross profit? (Hint: consider raw material cost but not operating
expense)
Answer is complete but not entirely correct.
Product mix
Product M
Product N
100
33
units
units
c. What is the maximum weekly net profit this plant can earn using the product mix from Part b? (Hint:
consider operating expense and raw material cost)
Answer is complete but not entirely correct.
Weekly net profit
$ 960 x
Transcribed Image Text:b. Which product mix provides the highest gross profit? (Hint: consider raw material cost but not operating expense) Answer is complete but not entirely correct. Product mix Product M Product N 100 33 units units c. What is the maximum weekly net profit this plant can earn using the product mix from Part b? (Hint: consider operating expense and raw material cost) Answer is complete but not entirely correct. Weekly net profit $ 960 x
Resources: A, B, C (one each)
Availability: 2,500 min./week
Operating expense: $12,000/week
Product M
$190/unit
100 units/week
с
15 min./unit
A
20 min./unit
RM-1
$60/unit
Product N
$200/unit
80 units/week
15 min./unit
5 min./unit
RM-2
$40/unit
B
5 min./unit
RM-3
$40/unit
Transcribed Image Text:Resources: A, B, C (one each) Availability: 2,500 min./week Operating expense: $12,000/week Product M $190/unit 100 units/week с 15 min./unit A 20 min./unit RM-1 $60/unit Product N $200/unit 80 units/week 15 min./unit 5 min./unit RM-2 $40/unit B 5 min./unit RM-3 $40/unit
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