MEXICANA WIRE WORKS Calculating profit per unit: Product W0075C W0033C W0005X W0007X Material 33.00 25.

00 35.00 75.00 Labor 9.90 7.50 10.50 11.25 Overhead 23.10 17.50 24.50 63.75 Total Expense Selling Price Profit 66.00 100.00 34.00 50.00 80.00 30.00 70.00 130.00 60.00 150.00 175.00 25.00

Total Maximum Profit: 34X1+30X2+60X3+25X4

Equation developed using the constraints: Drawing constraint 1X1+2X2+0X3+1X4 <=4000 Extrusion constraint 1X1+1X2+4X3+1X4 <=4200 Winding constraint 1X1+3X2+0X3+0X4 <=2000 Packaging constraint 1X1+0X2+3X3+2X4 <=2300 X1 >= 150; X4 >= 600 X1 <= 1400 X2 <= 250 X3 <= 1510 X4 <= 1116

PRODUCTS W75C Decision Variables Conribution Constraint 1 Constraint 2 Constraint 3 Constraint 4 Constraint 5 Drawing Constraint 6 Extrusion Constraint 7 Winding Constraint 8 Packaging Constraint 9 Constraint 10 1100 34 1 W33C 250 30 1 1 1 1 1 1 1 1 2 1 3 0 0 4 0 3 1 1 0 2 1 W5X W7X 0 60 600 25 1400 250 1510 1116 4000 4200 2000 2300 150 600 Available Capacity Total

59900 1100 250 0 600 2200 1950 1850 2300 1100 600

1. What recommendation should Ron Garcia make with what justification? To achieve optimum profit of US$ 59900 that satisfies all limitations, Mexicana Wire Works should produce 1100 units of W0075C, 250 units OF W0033C, no units of W0005X and 600 units of W0007X.

2. Discuss the need for temporary workers in the drawing department. Hours for drawing are un-utilized due to lack of winding and packaging hours and hence there is no need of hiring temporary workers in the drawing department. If we dont have sufficient packaging hours to precede the product after drawing and extrusion, the finished product will not come out for delivery.