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Question: 13 ames manufacturing plant produces two different replacement parts for...

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13. Ames Manufacturing Plant produces two different replacement parts for dish- washers. During a normal shift, they have 7 hours of time available on their main fabrication machine. The machine will process 40 of Part X in an hour and 25 of Part Y. Each Part X requires 0.5 hours to assemble and each Part Y requires 0.4 hours. Ames has 64 hours of labor available on this line each shift. The painting booth can handle 40 parts per hour and can be used a maximum of 6 hours per shift. Ames has a $45 profit margin for Part X and $40 for Part Y. Below you can see the spreadsheet model with the optimal profit maximizing production plan and the sensitivity analysis. Answer the questions based on this output. 1 Ames Manufacturing Plant Time (in hours) Part YAvailable 4 Activity s Machining 6 Labor 7 Painting 8 Unit Profit Part X 0.03 0.04 0.50 0.40 0.03 0.03 $45 $40 64 10 Production Plan 160 RHS 12 13 Machining 14 Labor 15 Painting 16 17 Total profit 18 LHS 6.4 <: 64 6400 Adjustable Cells Final Reduced Objective Allowable Allowable Value Cost Coefficient Increase Decrease Cell SB$10 Production Plan Part X5 SC$10 Production Plan PartY160 Name 45 5 1E-30 1E+30 40 Constraints Final Shadow Constraint Allowable Allowable Value Price R.H. Side Increase Decrease 0.6 Cell SB$13 Machining LHS SB$14 Labor LHS SBS15 Painting LHS Name 7 1E+30 6.4 64 100 64 6 1E+30

c. At what minimum Unit Profit would Ames consider manufacturing Part X? d. The materials requirements for Part Y changed increasing its cost of production by $2 per unit. What impact will this have on the production plan and profit? e. The materials requirements for Part Y changed increasing its cost of production by $5 per unit. What impact will this have on the production plan and profit? f. Which constraints are binding? g. Machining time can be increased by a maximum of 4 hours at a cost of $90 per hour. Should they add any machine time? If so, how many hours? h. Ames uses overtime to add up to 4 additional hours for assembly. Overtime hours cost the company $50 per hour. How many hours of overtime should they add? Why? i. Ames uses overtime to add up to 16 additional hours for assembly. Overtime hours cost the company $50 per hour. How many hours of overtime should they add? Why?

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