Solved: Prepare a report that addresses the following

issues 1 The

Prepare a report that addresses the following issues:

1. The optimal quantities of products and the necessary quantities of labor and materials.
2. One proposal is to make equal amounts of the products. What amount of each will maximize
contribution, and what quantities of labor and materials will be needed? How much less will total
contribution be if this proposal is adopted?
3. How would you formulate the constraint for material A if it was determined that there is a 5
percent waste factor for material A and equal quantities of each product are required?

Son, Ltd., manufactures a variety of chemical products used by photo-processors. Son was
recently bought out by a conglomerate, and man-agers of the two organizations have been
working together to improve the efficiency of Son’s operations. Managers have been asked to
adhere to weekly operating budgets and to develop operating plans using quantitative methods
whenever possible. The manager of one department has been given a weekly operating budget
of $ 11,980 for production of three chemical products, which for convenience shall be referred to
as Q, R, and W. The budget is intended to pay for direct labor and materials. Processing
requirements for the three products, on a per- unit basis, are shown in the table. The company
has a contractual obligation for 85 units of product R perweek.

ANSWER
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