An Uninterruptible Power System Manufacturer Is Currently Deciding Between Two

Essay

An uninterruptible power system manufacturer is currently deciding between two processes for its new automated assembly system. All defect- free units can be sold at $210 each, and all rejected units can be sold at $11 for scrap. Other related information for each model is given below. $$\begin{array} { | l | l | l | } \hline \text { Process } & \text { A } & \text { B } \\\hline \text { Output rate, units/hour } & 250 & 230 \\\hline \begin{array} { l } \text { Daily available } \\\text { production time, hours }\end{array} & 14 & 16 \\\hline \text { Material cost, } \$ / \text { unit } & 25 & 25 \\\hline \begin{array} { l } \text { Variable operating cost, } \\\$ / \text { hour }\end{array} & 45 & 49 \\\hline \begin{array} { l } \text { Variable overhead cost, } \\\$ / \text { hour }\end{array} & 40 & 39 \\\hline \text { Percent reject } & 40 & 38 \\\hline\end{array}$$ Which process should be adopted to maximize profit per day?