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1 October, 10:27

the production manager for the coory soft drink company is considering the production of 2 kinds of soft drinks: regular (R) and diet (D). two of the limited resources are production time 480 minutes per day and sytrum limited to 675 gallons per day. to produce a regular case requires 2 minutes and 5 gallons of syrup, while a diet case needs 4 minutes and 3 gallons of syrup, products for regular soft drink are $3.00 per case and profits for diet soft drink are $2.00 per case. What is the time constraint

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  1. 1 October, 10:42
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    The time constraint is that you have only 480 minutes available per day to produce either type of soda.

    In this case, if you are going to base your production schedule on your time constraint, then you should produce only regular sodas (240 cases). Each case of regular sodas generates $1.50 per minute of machine hour used. While a case of diet soda generates only $0.50 per minute of machine hour. Total revenue generated from he production of regular soda would be $720. If you would produce diet soda, total revenue would be $240.

    The problem you face is the materials constraint (syrup), which will allow you to produce only 135 cases of regular soda and 0 cases of diet soda. Total revenue = $405, which is still higher than the revenue generated from diet soda ($240).

    Explanation:

    2 kinds of soft drinks:

    regular (R) diet (D)

    production time 480 minutes per day

    syrup limited to 675 gallons per day

    regular case requires 2 minutes and 5 gallons of syrup, while a diet case needs 4 minutes and 3 gallons of syrup

    price:

    regular $3 diet $2

    regular diet

    sales price $3 $2

    syrup gallons required 5 3

    revenue per syrup gallon $0.60 $0.67

    production time required 2 4

    revenue per px time $1.50 $0.50
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