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Linear Production : Production Planning

Production Planning. The Bogard Corporation produces three types of bookcases, which it sells to large office supply companies. The production of each bookcase requires two machine operations, trimming and shaping, followed by assembly, which includes inspection and packaging. All three type require 0.4 hour of assembly time, but the machining operations have different processing times, as shown here, in hours per unit.

Standard Narrow Wide
Timmer 0.2 0.4 0.6
Shaper 0.6 0.2 0.5

Each Machine is available 150 hours per month, and the current size of the assembly department provides capacity of 600 hours. Each bookcase produced yields a unit profit contribution as follows:

Standard Narrow Wide
Profit $8 $6 $10

a. What are the optimal production quantities for the company?

b. What is the pattern in the optimal allocations?

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Solution Summary

Solution shows the optimal production quantities for the company and the pattern of the optimal allocations.