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- September 26, 2022 at 12:57 pm #667222
Good day sir.
I particularly have a challenge at (ci) knowing how many overtime hours per day would it be worth employing if profitable, but I wouldn’t mind i get the full solution so as to assess myself. ThanksThe Rainbow Paint Company is a privately owned manufacturing firm, specializing in the production of industrial paint. The selling prices and the associated unit variable costs for Gloss and Emulsion Paint are shown below: Production Selling Price Unit Variable Cost N N Gloss 13.00 9.00 Emulsion 16.00 10.00 Each gallon of gloss paint requires 6 minutes of skilled labour and each gallon of emulsion requires 12 minutes of skilled labour available. In a given day, there are 400 man-hours of skilled labour available. Also there are 100 kgs of important blending material available each day. Where each gallon of emulsion needs 0.02 kg of material and each gallon of gloss needs 0.05 kg of the blending material. The processing capacity at the plant is limited to 3,000 gallons of paint per day. The company is committed to supplying a leading retailer with 5,000 gallons of gloss and 2500 gallons of emulsion each working week (consisting of five days). In addition, there is an agreement with the union that at least 2000 gallons of paint are produced each day. Rainbow Company management would like to determine the daily production volume of each of the two paints that maximize total contribution. Required: a. Develop a linear of the production problem facing Rainbow Paint Company. b. Using graphical approach determine the optimum daily production plan and the consequent contributions c. The union is pressing for overtime wage rate of N20 per hour above the wage rate for skilled labour. i. Justify whether Rainbow Paint Company find this a profitable possibility or not? ii. If it was profitable to pay the overtime, how many overtime hours per day would it be worth employing.
September 26, 2022 at 4:36 pm #667241We do not provide full answer to full questions.
We provide free lectures on all Paper PM topics (including obviously linear programming). In addition we help with specific problems that students have with our lectures or with questions in their Revision Kit.
You must have an answer to this question in the same book in which you found the question and so ask about whatever it is in the answer that you are not clear about.
Part c involves calculating the shadow cost of labour, which again is explained in our free lectures.
(Incidentally, you obviously cannot be required to draw a graph in the exam and provide a full graphical solution, even though you are expected to understand the graphical approach.)
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