For the four basic configurations that follow, assume that the market is demanding product that must be processed by both Resource X and Resource Y for Cases 1,2,3. For case 4 both resources supply separate buy dependent markets, that is the number of units of output from both X and Y must be equal.
Plans are being made to produce a product that requires 40 mins of resource X and 30 min of resource Y. Assume that there is only one of each of these resources and that market demand is 1,400 units per month.
How many hours of production time would you schedule for X and Y? What would happen if both were scheduled for the same number of hours?
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One product requires:
40 minutes of resource X
30 minutes of resource Y
Therefore: 1400 units of products or outputs will require:
40minutes * 1400 units of resource X
= 56,000 minutes or 933.33 hrs of ...
The hours of production time which would schedule for X and Y are determined.