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  • PM 2023AU Team 1 W5.TuAnhNguyen

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    Anh Nguyễn
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    This document analyzes a limiting factor case study for a company producing three products: X, Y, and Z. It provides information on the budgeted sales demand, unit sales price, variable costs of materials and labor, unit contribution, and beginning inventory for each product. Based on the available inventory and variable costs, it determines that producing 175 units of Product X, 500 units of Product Y, and 200 units of Product Z will maximize profit at $11,100 within the material and labor cost constraints.

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    This document analyzes a limiting factor case study for a company producing three products: X, Y, and Z. It provides information on the budgeted sales demand, unit sales price, variable costs of materials and labor, unit contribution, and beginning inventory for each product. Based on the available inventory and variable costs, it determines that producing 175 units of Product X, 500 units of Product Y, and 200 units of Product Z will maximize profit at $11,100 within the material and labor cost constraints.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    4 views2 pages

    PM 2023AU Team 1 W5.TuAnhNguyen

    Uploaded by

    Anh Nguyễn
    This document analyzes a limiting factor case study for a company producing three products: X, Y, and Z. It provides information on the budgeted sales demand, unit sales price, variable costs of materials and labor, unit contribution, and beginning inventory for each product. Based on the available inventory and variable costs, it determines that producing 175 units of Product X, 500 units of Product Y, and 200 units of Product Z will maximize profit at $11,100 within the material and labor cost constraints.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 2

    LIMITING FACTOR ANALYSIS

    Case 1: Lucky

    Units X Y Z Total Limit


    Budgeted sales demand Units of product 550 500 400
    Unit sales price $ 16 18 14
    Variable cost
    Materials $ 8 6 2
    Labour $ 4 6 9
    Total unit VC 12 12 11
    Unit contribution $ 4 6 3
    Rank 2 1 3
    Beginning inventory Units of product 250 200
    Shortage 175 500 200
    To make 175 500 200
    VC
    Material $ 1,400 3,000 400 4,800 4,800
    Labour $ 700 3,000 1,800 5,500 6,600
    Total VC 2,100 6,000 2,200 10,300 Check

    Availability to sell Units of product 425 500 400


    Sale quantity sold Units of product 425 500 400
    Sale revenue 6,800 9,000 5,600 $ 21,400
    Profit margin $ 11,100
    LYSIS

    Shortage Excessive
    0 0
    0 1100
    feasible

    Objective profit margin


    Decision variable
    Contraints
    Self<Availibility:
    Cost of material < limit on
    Decision variable > = 0 intig

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