Mexicana Wireworks
Autor: Asmidar Osman • November 12, 2016 • Case Study • 342 Words (2 Pages) • 600 Views
CASE STUDY 2: MEXICANA WIRE WORKS
Question 1
The Objective is to Maximize Profit
Given information:
Product Material Labour Overhead Total Cost Selling Price Profit
W0075C (a) $33 $9.90 $23.10 $66 $100 $34
W0033C (b) $25 $7.50 $17.50 $50 $80 $30
W0005X (c) $35 $10.50 $24.50 $70 $130 $60
W0007X (d) $75 $11.25 $63.75 $150 $175 $25
Maximize Profit (P) = 34a+30b+60c+25d (initial equation)
After adjusting to limitations:
subject to the constraints:
a+2b+d <=4000 (drawing)
a+b+4c+d <=4200 (extrusion)
a+3b <=2000 (winding)
a+ 3c+2d <=2300 (packaging)
a >= 150; d >= 600 (key customer)
a <= 1400 (April Order)
b <= 250 (April Order)
c <= 1510 (April Order)
d <= 1116 (April Order)
What recommendation should Ron Garcia make and with what justification?
Maximum profit before taking into account order constraints= $74,000 (refer to QM printout)
The initial suggestion for maximum profit would be to produce 2,000 units of W0075C and 100 units of W0005X. However, this initial suggestion does not taking into account constraints of orders from 2 key
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