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Mr. Weiss. Section 10 – Module 53 – The Optimum Resource Mix. - PowerPoint PPT PresentationTRANSCRIPT
Mr. Weiss
Section 10 – Module 53 – The Optimum Section 10 – Module 53 – The Optimum Resource MixResource MixAs a recent graduate of the Graduate As a recent graduate of the Graduate
School of Business at the University of School of Business at the University of Northern Freshwater, you have been hired Northern Freshwater, you have been hired as a consultant. Your first project is to as a consultant. Your first project is to organize production for a manufacturing organize production for a manufacturing firm at each of its five plants. Your project firm at each of its five plants. Your project goal is to reach targeted amounts of goal is to reach targeted amounts of production while achieving minimum production while achieving minimum resource cost. The figures provided are resource cost. The figures provided are the amounts of various inputs presently the amounts of various inputs presently used in the production process at each used in the production process at each plant.plant.
Marginal Physical Marginal Physical Product of LandProduct of Land
Marginal Physical Marginal Physical Product of LaborProduct of Labor
Marginal Physical Marginal Physical Product of CapitalProduct of Capital
Facility AFacility A 1515 5050 100100Facility BFacility B 4040 4040 7575Facility CFacility C 1010 2020 125125Facility DFacility D 2020 4040 100100Facility EFacility E 4040 2020 7575
The inputs used The inputs used are priced as are priced as follows:follows:
Land:Land: $5 per $5 per hourhourLabor:Labor: $10 per hour$10 per hourCapital: $25 Capital: $25 per hourper hour
Mr. Weiss
Section 10 – Module 53 – The Optimum Section 10 – Module 53 – The Optimum Resource MixResource MixAs a recent graduate of the Graduate As a recent graduate of the Graduate
School of Business at the University of School of Business at the University of Northern Freshwater, you have been hired Northern Freshwater, you have been hired as a consultant. Your first project is to as a consultant. Your first project is to organize production for a manufacturing organize production for a manufacturing firm at each of its five plants. Your project firm at each of its five plants. Your project goal is to reach targeted amounts of goal is to reach targeted amounts of production while achieving minimum production while achieving minimum resource cost. The figures provided are resource cost. The figures provided are the amounts of various inputs presently the amounts of various inputs presently used in the production process at each used in the production process at each plant.plant.
Marginal Physical Marginal Physical Product of LandProduct of Land
Marginal Physical Marginal Physical Product of LaborProduct of Labor
Marginal Physical Marginal Physical Product of CapitalProduct of Capital
Facility AFacility A 1515 5050 100100Facility BFacility B 4040 4040 7575Facility CFacility C 1010 2020 125125Facility DFacility D 2020 4040 100100Facility EFacility E 4040 2020 7575
1. Which 1. Which facility or facility or facilities (if facilities (if any) are any) are presently using presently using the least-cost the least-cost combination of combination of inputs for inputs for producing?producing?
Mr. Weiss
Section 10 – Module 53 – The Optimum Section 10 – Module 53 – The Optimum Resource MixResource MixAs a recent graduate of the Graduate As a recent graduate of the Graduate
School of Business at the University of School of Business at the University of Northern Freshwater, you have been hired Northern Freshwater, you have been hired as a consultant. Your first project is to as a consultant. Your first project is to organize production for a manufacturing organize production for a manufacturing firm at each of its five plants. Your project firm at each of its five plants. Your project goal is to reach targeted amounts of goal is to reach targeted amounts of production while achieving minimum production while achieving minimum resource cost. The figures provided are resource cost. The figures provided are the amounts of various inputs presently the amounts of various inputs presently used in the production process at each used in the production process at each plant.plant.
Marginal Physical Marginal Physical Product of LandProduct of Land
Marginal Physical Marginal Physical Product of LaborProduct of Labor
Marginal Physical Marginal Physical Product of CapitalProduct of Capital
Facility AFacility A 1515 5050 100100Facility BFacility B 4040 4040 7575Facility CFacility C 1010 2020 125125Facility DFacility D 2020 4040 100100Facility EFacility E 4040 2020 7575
2. What specific 2. What specific recommendation recommendation would you make for would you make for each facility to help each facility to help them achieve the them achieve the least-cost least-cost combination of combination of resource use?resource use?A. A. Recommendation Recommendation for Facility Afor Facility A
Mr. Weiss
Section 10 – Module 53 – The Optimum Section 10 – Module 53 – The Optimum Resource MixResource MixAs a recent graduate of the Graduate As a recent graduate of the Graduate
School of Business at the University of School of Business at the University of Northern Freshwater, you have been hired Northern Freshwater, you have been hired as a consultant. Your first project is to as a consultant. Your first project is to organize production for a manufacturing organize production for a manufacturing firm at each of its five plants. Your project firm at each of its five plants. Your project goal is to reach targeted amounts of goal is to reach targeted amounts of production while achieving minimum production while achieving minimum resource cost. The figures provided are resource cost. The figures provided are the amounts of various inputs presently the amounts of various inputs presently used in the production process at each used in the production process at each plant.plant.
Marginal Physical Marginal Physical Product of LandProduct of Land
Marginal Physical Marginal Physical Product of LaborProduct of Labor
Marginal Physical Marginal Physical Product of CapitalProduct of Capital
Facility AFacility A 1515 5050 100100Facility BFacility B 4040 4040 7575Facility CFacility C 1010 2020 125125Facility DFacility D 2020 4040 100100Facility EFacility E 4040 2020 7575
B. B. Recommendation Recommendation for Facility Bfor Facility BC. C. Recommendation Recommendation for Facility Cfor Facility CD. D. Recommendation Recommendation for Facility Dfor Facility DE. Recommendation E. Recommendation for Facility Efor Facility E
Mr. Weiss
Section 10 – Module 53 – The Optimum Section 10 – Module 53 – The Optimum Resource MixResource Mix
Mr. Weiss
Section 10 – Module 53 – The Optimum Section 10 – Module 53 – The Optimum Resource MixResource Mix
Mr. Weiss
Section 10 – Module 53 – The Optimum Section 10 – Module 53 – The Optimum Resource MixResource Mix