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Dinno Corp makes three products; X, Y and Z. The bottleneck (constraint) in the production...

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Accounting

Dinno Corp makes three products; X, Y and Z. The bottleneck (constraint) in the production process is time required on Dinnos cutting machine. The amount of time each product requires is shown below:

  • Product X - 1.5 hours per unit
  • Product Y - 0.5 hours per unit
  • Product Z - 1.0 hours per unit

To maximize profits under the constrained resource, the order in which Dinno should focus its manufacturing efforts is first Product Z, then Product Y, and finally Product X. If the demand for each of the products is 400 units, and Dinno has 750 hours of cutting machine time, how many units of each of the products should Dinno make to maximize profits?

a.

Product X Product Y Product Z

400 units 400 units 400 units
b.

Product X Product Y Product Z

0 units 0 units 400 units

c.

Product X Product Y Product Z

0 units 75 units 400 units
d.

Product X Product Y Product Z

100 units 400 units 400 units

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