Question 6 options: Hartman Company is trying to determine how much of each of two products should...

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General Management

Question 6 options:

Hartman Company is trying to determine how much of each of twoproducts should be produced over the coming planning period. Theonly serious constraints involve labor availability in threedepartments. Shown below is information concerning laboravailability, labor utilization, overtime, and productprofitability.

Product 1

Product 2

Regular Hours Available

Overtime Hours Available

Cost of Overtime per Hour

Profit per Unit

32

16

Dept A hours/Unit

1

0.35

90

19

$13

Dept B hours/Unit

0.3

0.2

41

11

$21

Dept C hours/Unit

0.2

0.5

59

17

$14



If all production is done in a standard workweek, then Profit perUnit includes the cost to pay for the workforce. But, if overtimeis needed in each department, then the Profit Function needs to bereduced by the Cost per Hour of Overtime in Each Departmentmultiplied by the Number of Overtime Hours Used in Each Department.For example, if we used 5 hours of Overtime in Department A, wewould need to Subtract $13*5 from our Profit equation.


Setup and Solve the Linear Programming Problem and determine thenumber of units of Product 1 and Product 2 to produce to MaximizeProfit. Add an Additional Constraint to your LP to make sure thatALL of the Variables areINTEGERS


Hint: You will need 5 Decision Variables, 2 of them to determinethe production quantities, and 3 of them to determine how muchovertime to use in each of the departments.


Max Profit = $

(Do Not Use Commas) Hint: Max Profit is Between $3393 and$3743
Number of Units of Product 1 to Produce =


Number of Units of Product 2 to Produce =




Overtime in Department A =

hours
Overtime in Department B =

hours
Overtime in Department C =

hours

Answer & Explanation Solved by verified expert
3.9 Ratings (625 Votes)
Max Profit 3643Number of Units of Product 1 toProduce 78Number of Units of Product 2 to Produce 88Overtime in Department A 19 hoursOvertime in    See Answer
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