Problem 3.

14 - The Molokai Nut Company Production Planning Problem

Pounds produced
Min Req'd
Max Needed
Unit Selling Price
Unit Variable Cost
Unit Profit Margin
Total Profit

Whole
1000
1000

Cluster
500
400
500

Crunch
80
0
150

Roasted
200
0
200

$5.00
$3.15
$1.85

$4.00
$2.60
$1.40

$3.20
$2.16
$1.04

$4.50
$3.10
$1.40

$2,913.20

Machine Use
Hulling
Roasting
Coating
Packaging

Minutes required per pound

1.00
1.00
1.00
1.00
2.00
1.50
1.00
1.75
1.00
0.70
0.20
0.00
2.50
1.60
1.25
1.00

Used
1780
3180
1366
3600

Direct Materials
Nuts
Chocolate

Ingredients required per pound

0.60
0.40
0.20
1.00
0.40
0.60
0.80
0.00

Used
1016
764

Available
3600
3600
3600
3600
Available
1100
800

minutes
minutes
minutes
minutes

ch3no18
Problem 3.18- Valu-Com Electronics Production Planning Problem

Quantity Made
Minimum Req'd

HyperLink FastLink
500
1000
500
500

Ratio of FastLinks
to HyperLinks:

Required FastLink
production given
HyperLink
production:

1000

Selling Price
Manuf. Cost
Profit Margin

PC Board (sq in)

Resistors
Memory chips
Assembly Hours

$189.00
$136.00
$53.00

$149.00
$101.00
$48.00

SpeedLink
1500
500

$129.00
$96.00
$33.00

MicroLink EtherLink
2250
500
500
500

$169.00
$137.00
$32.00

$139.00
$101.00
$38.00

Per Unit Requirements

HyperLink FastLink SpeedLink MicroLink EtherLink
20
15
10
8
5
28
24
18
12
16
8
8
4
4
6
0.75
0.6
0.5
0.65
1

Page 3

ch3no18

Total Profit
$215,000.00

Used
60,500
100,000
30,000
3,688

Available
80,000 sq.in.
100,000 resistors
30,000 chips
5,000 hours

Page 4

ch3no20
Problem 3.20- Weedwacker Company Make or Buy Problem
Electric
30,000
0

Gas
10,000
5,000

Cost to Make
Cost to Buy

$55
$67

$85
$95

Total Available
Total Needed

30,000
30,000

15,000
15,000

Number to Make
Number to Buy

Dept Processing
Production
Assembly
Packaging

Total Cost

Hours Req'd per Unit

0.20
0.40
0.30
0.50
0.10
0.10

Page 5

Used
10,000
14,000
4,000

$2,975,000

Available
10,000 hours
15,000 hours
5,000
hours

Problem 3.25- Maintenance Labor Scheduling Problem

Time Period (T.P.)

12 am to 4 am
4 am to 8 am
8 am to 12 pm
12 pm to 4 pm
4 pm to 8 pm
8 pm to 12 am
Employees
Assigned to
Shift:
Total Employees:

Shift 1

Shift 2
1
1

90
640

Shift 3

Shift 4

Shift 5

Shift 6
1

1
1

250

1
1

1
1

175

1
1

125

Employees
Scheduled
90
340
250
175
300
125

Minimum Surplus
Employees Employees
Needed
Scheduled
90
0
215
125
250
0
165
10
300
0
125
0