Problem 2) The CarParts Company manufactures and assembles automobile doors and trunk lids. The plant produces semi-finished products that are then sanded and painted in the company’s finishing facili

  

Problem 2) The CarParts Company manufactures and assembles automobile doors and trunk lids. The plant produces semi-finished products that are then sanded and painted in the companys finishing facility. The finishing facility employs a total of 90 workers in two 8-hour shifts a day, 21 working days a month. The size of the labor force in the finishing facility fluctuates because of the annual leave taken by the employees Plan Capacity-doors (# units) Plant Capacity-trunk lids (# units) Finishing facility leave requests (worker-months) May June July 4200 500 6000 3000 2400 2500 30 40 50 Table 1. Plant Data A worker month is the equivalent of one worker being absent for the entire month (21 working days). Product Unit coet (S) for May andUnit coet (S) for July June (including labor) Unit Selling Price(S) (including labor) Doors Trunk lids 180 Table 2. Product cost and price The production costs will increase in July as a result of a union negotiated wage hike. 250

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