# solution

A small firm makes three products, which all follow the same three-step process, which consists of milling, inspection, and drilling. Product A requires 6 minutes of milling, 5 minutes of inspection, and 4 minutes of drilling; product B requires 2.5 minutes of milling, 2 minutes of inspection, and 2 minutes of drilling; and product C requires 5 minutes of milling, 4 minutes of inspection, and 8 minutes of drilling. The department has 20 hours available during the next period for milling, 15 hours for inspection, and 24 hours for drilling. Product A contributes \$6.00 per unit to profit, product B contributes \$4.00 per unit, and product C contributes \$10.00 per unit

QUESTION 5

1. The firm’s owner wants to produce 33 units of product A, even if this means that his profit will not be optimal. What will be the new profit in this case? Please round your answer to the nearest integer and do not use the \$ sign and the thousands’ comma separator.

QUESTION 6

1. The profit contribution of product C increased by \$ 1.4 per unit. What is the new optimal profit? Please round your answer to the nearest integer and do not use the \$ sign and the thousands’ comma separator.

QUESTION 7

1. Because of some re-allocation of resources, the drilling time availablenfor these three products has increased by 5 hours. What is the new optimla profit in this case? Please round your answer to the nearest integer and do not use the \$ sign and the thousands’ comma separator.

QUESTION 8

1. The supply chain manager of the firm noticed that the inventory level of product B is very high. To reduce the inventory, the firm decided to limit the production of product B to a maximum of 150 units each period.

What is the new optimal profit in this case? Please round your answer to the nearest integer and do not use the \$ sign and the thousands’ comma separator.