HW 3_Solved (1)

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Northwest Mississippi Community College *

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530

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Industrial Engineering

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Apr 3, 2024

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docx

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4

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SCMS 3711: HW 3 Assigned: March 23, 2023 Due: Electronically via Canvas by March 30, 2023. Rules for submitting HW 3: 1. Please work with your group 2. Your HW submission should contain one Excel file (Use different tabs for different questions and name them appropriately ) and one word file (you may edit this file). 3. Please save your files in the following format: HW3_Your Group Name (example: If I were to submit my homework and I belonged to Group 1, I would name the file as HW3_Group1.) 4. Please include the names of your group members and group name in your word document. Homework 3 Group Number: Name Contributions Group member 1: Group member 2: Group member 3: Part I – Component Manufacturing (3 points) Vollmer Manufacturing makes three components for sale to refrigeration companies. The components are processed on two machines: a shaper and a grinder. The times (in minutes) required on each machine are as follows: Component Shaper Grinder 1 5 4 2 8 5 3 4 2 The shaper is available for 120 hours, and the grinder for 110 hours. No more than 200 units of component 3 can be sold, but up to 1,000 units of each of the other components can be sold. In fact, the 1
company already has orders for 600 units of component 1 that must be satisfied. The per unit profit (in dollars) for each of the three components are as follows: Component Profit Margin 1 8 2 6 3 9 a. Formulate and solve for the recommended production quantities that will maximize contribution to profit. In other words, determine the number of components 1,2, and 3 to produce such that the total profit is maximized. No mathematical model is required. Only the Excel model and solution is required. (2 points) Optimal Production Quantities: Component 1: 1000, Component 2: 175, and Component 3: 200. Total profit = $10850. b. If one more hour could be made available on the shaper, how much would it be worth? (1 point) $45 Part II – Supplying Power at Midwest Electric (5 points) Midwest Electric has three electric power plants that supply the power needs of four cities. Each power plant can supply the amounts shown in the table below (in millions of kilowatt-hours of electricity): Supply Plant 1 40 Plant 2 50 Plant 3 40 The peak power demand (again in millions of kwh) at each city is given in the following table: Demand City 1 40 City 2 20 City 3 30 City 4 30 2
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