ACA Company

Profit Maximization Problem Optimal annual profit for ACA b) What is the optimal annual profit for ACA? Subcompact Note: All the numbers in this section were pasted as values x1 620,000 Capacity Constrains x1 + x2+ x3 + x4 + y1+ y2 1 x1 + x2 1 x3 + x4 0 y1 + y2 0 Mark Strategy x1 + x2 ≥ 0.5(x1 + x2+ x3 + x4) 1 Fuel Average 40 Proft Margin 150 Subcompact x1 620,000 Capacity Constrains x1 + x2+ x3 + x4 + y1+ y2 1 x1 + x2 1 x3 + x4 0 y1 + y2 0 Mark Strategy x1 + x2 ≥ 0.5(x1 + x2+ x3 + x4) 1 Fuel Average 40 Proft Margin 150 c) How much would the annual profit drop if the fuel efficiency requirement were raised to 28 MPG?

≥ Compact Intermediate Luxury Truck Van x2 x3 x4 y1 y2 0 0 350,000 230,000 0 LHS 1 1 1 1 1 1,200,000 1 0 0 0 0 564,286 0 1 1 0 0 360,714 0 0 0 1 1 275,000 1 -1 -1 0 0 203,571 34 15 12 20 25 0 225 250 500 400 200 Total Profit 375,000,000 Obj Function Compact Intermediate Luxury Truck Van x2 x3 x4 y1 y2 0 0 349,997 230,004 0 LHS 1 1 1 1 1 1,200,000 1 0 0 0 0 620,000 0 1 1 0 0 349,997 0 0 0 1 1 230,004 1 -1 -1 0 0 270,004 34 15 12 20 25 28 225 250 500 400 200 Total Profit 359,999,650 Obj Function 15,000,350

The Auto Company of Amer is 1,200,000 vehicles per yea capacity limit of 400,000 car of the product mix for the fo The Corporate Average Fu your Excel file with Solver a) b) c) and solve it using Solver. 00x4 + 400y1+ 200y2 200,000 urposes:

rica (ACA) produces four type of cars: subcompact, compact, intermediate, and luxury. ACA also produces trucks ar. Subcompact and compact cars are built in one facility with an annual capacity limit of 620,000 cars. Intermed rs. Finally, the truck/van facility has an annual capacity limit of 275,000 vehicles. ACA’s marketing strategy requir our car types. Profit margins, market potential, and fuel efficiencies are summarized below. uel Efficiency (CAFE) standards require an average fleet fuel efficiency of at least 27 MPG. ACA would lik r solution with this question. Formulate the LP program and solve it using Solver. What is the optimal annual profit for ACA? How much would the annual profit drop if the fuel efficiency requirement were raised to 28 MPG?