A company makes two products (X and Y) using two machines (A and B). Each unit of X that is produced requires 50 minutes of processing time on machine A and 30 minutes of processing time on machine B. Each unit of Y that is produced requires 24 minutes processing time on machine A and 33 minutes processing time on machine B.
At the start of the current week there are 30 units of X and 90 units of Y in stock. Available processing time on machine A is forecast to be 40 hours and on machine B is forecast to be 35 hours.
The demand for X in the current week is forecast to be 75 units and for Y is forecast to be 95 units. Company policy is to maximize the combined sum of the units of X and the units of Y in stock at the end of the week.
The demand for two products in each of the last four weeks is shown below.
Week
1 2 3 4
Demand - product 1 23 27 34 40
Demand - product 2 11 13 15 14
Apply exponential smoothing with a smoothing constant of 0.7 to generate a forecast for the demand for these products in week 5.
These products are produced using two machines, X and Y. Each unit of product 1 that is produced requires 15 minutes processing on machine X and 25 minutes processing on machine Y. Each unit of product 2 that is produced requires 7 minutes processing on machine X and 45 minutes processing on machine Y. The available time on machine X in week 5 is forecast to be 20 hours and on machine Y in week 5 is forecast to be 15 hours. Each unit of product 1 sold in week 5 gives a contribution to profit of £10 and each unit of product 2 sold in week 5 gives a contribution to profit of £4.
It may not be possible to produce enough to meet your forecast demand for these products in week 5 and each unit of unsatisfied demand for product 1 costs £3, each unit of unsatisfied demand for product 2 costs £1.
A company is involved in the production of two items (X and Y). The resources need to produce X and Y are twofold, namely machine time for automatic processing and craftsman time for hand finishing. The table below gives the number of minutes required for each item:
Machine time Craftsman time
Item X 13 20
Y 19 29
The company has 40 hours of machine time available in the next working week but only 35 hours of craftsman time. Machine time is costed at £10 per hour worked and craftsman time is costed at £2 per hour worked. Both machine and craftsman idle times incur no costs. The revenue received for each item produced (all production is sold) is £20 for X and £30 for Y. The company has a specific contract to produce 10 items of X per week for a particular customer.
A company manufactures two products (A and B) and the profit per unit sold is £3 and £5 respectively. Each product has to be assembled on a particular machine, each unit of product A taking 12 minutes of assembly time and each unit of product B 25 minutes of assembly time. The company estimates that the machine used for assembly has an effective working week of only 30 hours (due to maintenance/breakdown).
Technological constraints mean that for every five units of product A produced at least two units of product B must be produced.
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