Robin Tires, Inc. makes two types of tires, one for SUVs and the other for Hatchbacks. The firm has the following limits - 500 hours for production, 250 hours for packaging, and 150 hours for shipping. The times required per tire type is given in the following table
Assuming that the company is interested in maximizing the total profit contribution, find the optimal solution using Excel Solver and answer the following:
a. How many hours of production time will be scheduled in each department?
b. What is the slack time in each department?
c. If one more hour is available for packaging, what is the change in profit?
d. What is the change in profit if one more hour is available for shipping?
Correct Answer:
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Let S = number of SUV tires manufactur...
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