Principles of Operations Management, 2/E
Tutorial 2
Data Base Applications
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DATABASE APPLICATION - MANN ENTERPRISES
Mann Enterprises is a Houston manufacturer of tables and accessories for personal computers. The company is caught in a vicious crossfire between rapidly dropping market prices from competitors worldwide for its products and stable domestic costs for its materials. The 15 different products noted below must be scheduled to maximize profits or there will be no jobs and no firm in another three months. Your job as the new P/OM graduate is to address the issues raised this morning by Laura Mann, the president, in an emergency meeting in her office. Without being told so explicitly, you concluded that if you didn't get the schedule done accurately and in a timely manner you would be history. To your relief, the industrial engineers and accountants have provided the data shown below. The issues, as recorded in your notes, are shown in a through f below.
| Product |
Steel Alloy Required (Lb.) |
Plastic Required (Sq Ft) |
Wood Required (Bd. Ft) |
Aluminum Required (Lb.) |
Formica Required (Bd. Ft) |
Labor Required (Hr) |
Minimum Monthly Demand (Units) |
Contribution to Profit |
| A158 |
-- |
.4 |
.7 |
5.8 |
10.9 |
3.1 |
-- |
$18.79 |
| B179 |
4 |
.5 |
1.8 |
10.3 |
2.0 |
1.0 |
20 |
6.31 |
| C023 |
6 |
-- |
1.5 |
1.1 |
2.3 |
1.2 |
10 |
8.19 |
| D045 |
10 |
.4 |
2.0 |
-- |
-- |
4.8 |
10 |
45.88 |
| E388 |
12 |
1.2 |
1.2 |
8.1 |
4.9 |
5.5 |
-- |
63.00 |
| F422 |
-- |
1.4 |
1.5 |
7.1 |
10.0 |
.8 |
20 |
4.10 |
| G366 |
10 |
1.4 |
7.0 |
6.2 |
11.1 |
9.1 |
10 |
81.15 |
| H600 |
5 |
1.0 |
5.0 |
7.3 |
12.4 |
4.8 |
20 |
50.06 |
| I701 |
1 |
.4 |
-- |
10.0 |
5.2 |
1.9 |
50 |
12.79 |
| J802 |
1 |
.3 |
-- |
11.0 |
6.1 |
1.4 |
20 |
15.88 |
| K900 |
-- |
.2 |
-- |
12.5 |
7.7 |
1.0 |
20 |
17.91 |
| L901 |
2 |
1.8 |
1.5 |
13.1 |
5.0 |
5.1 |
10 |
49.99 |
| M050 |
-- |
2.7 |
5.0 |
-- |
2.1 |
3.1 |
20 |
24.00 |
| N150 |
10 |
1.1 |
5.8 |
-- |
-- |
7.7 |
10 |
88.88 |
| P259 |
10 |
-- |
6.2 |
15.0 |
1.0 |
6.6 |
10 |
77.01 |
| Availability per month |
980 |
400 |
600 |
2500 |
1800 |
1000 |
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- How many of each of the 15 products should be produced each month?
- Clearly explain the meaning of each shadow price?
- A number of workers interested in saving money for the holidays have offered to work overtime next month at a rate of $12.50 per hour. What should the response of management be?
- Two tons of steel alloy are available from an overstocked supplier at a total cost of $8,000. Should the steel be purchased? All or part of the supply?
- The accountants have just discovered that an error was made in the contribution to profit for product N150. The correct value is actually $8.88. What are the implications of this error?
- Management is considering the abandonment of five product lines (those beginning with letters A through E). If no minimum monthly demand is established, what are the implications? Note that there already is no minimum for two of these products. Use the corrected value for N150.
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