Maximum Profit Rate

Maximum Profit Rate

Maximum Profit Rate - Profit rate (P_R) = Profit per piece(P_R.) x Q where Q is production rate per unit time.

Now

Q = 1/t_P

= 1/t_h + t_m + t_c (t_m / T)

The total cost (C_T) per piece is

C_T = K₁ t_h + K₁ t_m + K₁ t_c (t _m / T) + K₂ (t_m / T)

where K, is direct labour cost (Rs)

K₂ is tool grinding cost (Rs)

t_h is handling (idle) time per piece (minutes) 1m is machining time per piece (min)

t_m is tool changing time (min)

t_c is tool changing time (min)