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    Limiting Factor Questions

    Uploaded by

    Pak Career

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    Download as pdf
    of 1
    Brackish Ltd produces hand-made wrought-iron patio furniture. The company has two products, tables and chairs. Each table requires 40 kg of material and ten hours of direct labour. Each chair requires 25 kg of material and 20 hours of direct labour. Weekly demand is 900 tables and 1,500 chai Only 85,000 kg of material are available per week, while the supply of labour is restricted to 50,000 hours per week. Required Identify the limiting factor. Kransky Ltd makes three types of stretcher, Rigid (R), Extreme (E) and Conventional (C), At present the company has only 1,000 hours of direct labour available per week. The following information is available. Product R E c Demand per week (units) 80, 20 80, Direct labour hours per unit 5 20 5 Contribution per unit £50 £100 £40. Required Calculate the most profitable weekly production plan. ‘Sandlewood ple manufactures two types of industrial cleaner, XG and SL. There is only one packaging line in the factory and its capacity is restricted to 150,000 hours per month. Product XG st Maximum sales per month £500,000 £800,000 Variable costs per month £200,000 £300,000 Packaging hours required per month to meet maximum sales 100,000 100,000 Required Calculate the optimum monthly production plan for Sandlewood ple. Mary Whelan Ltd produces clothing forthe luxury market. The company has a contract with Yolade Mills ple for the whole of Yolade Mills ple’s output of a special fabric called ‘Yolene’. Mary Whelan Ltd has the following demand, selling prices and costs for its products. Product Scarves Blouses Skirts Demand (units per week) 1,000°—-2,000——«1,000 ‘Yolene per unit (square metres) 1 2 3 Selling price per unit £40 £64 286 Packaging cost per unit £5 £5 £5 Direct labour hours per unit 0.25 050 0.50 Fixed costs are £15,000 per week fora five-day working waok. 350 direct labour hours per day are available at £6 per hour. Yolade Mills ple can produce a maximum of 5,000 square metres of Yolene per week, ata selling price of £20 per square metro. Required Identify the most profitable weekly production plan.

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