Mexicana Wire Works

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Mexicana Wire Works In partial fulfilment Of the course requirement In Management Science 1st Term, S.Y. 2012-2013 Submitted to: Dr. Dennis Berino Prepared by Group 5: Shyne Ampatuan Diberjohn Balinas Jo-Ann Deseo July 24, 2012 Company background Mexicana, a subsidiary of Westover Wire Works, a Texas firm, is a medium-sized producer of wire windings used in making electrical transformers. Its product, the windings, is considered a standardized design. The production process for this involves drawing, extrusion, winding, inspection and packaging. After inspection, good product is packaged and sent to finished product storage; defective product is stored separately until it can be reworked. Please refer to the plant lay-out below:…show more content…
Thus, the objective function would be: P = 34X1 + 30X2 + 60X3 +25X4 Constraints: a. Required number of hours and capacity Drawing constraint: X1 + 2X2+ X4 ≤ 4,000 Extrusion constraint: X1 + X2+ 4X3 + X4 ≤ 4,200 Winding constraint: X1 + 3X2 ≤ 2,000 Packaging constraint: X1 + 3X3 + 2X4 ≤ 2,300 b. Meeting the consumer demand. Note that Vivian has given her word to a key customer that they will manufacture 600 units of product W0007X and 150 units for product W0075C for him during April. Constraints: X1 ≥ 150 X4 ≥ 600 c. Number of April orders Constraints: X1 ≤ 1,400 X2 ≤ 250 X3 ≤ 1,510 X4 ≤ 1,116 d. Non-negativity constraint: : X1, X2, X3, X4 ≥ 0 Problem 1: What recommendations should Ron Garcia make, with what justification? Using QM for windows would help us determine the number of products that should be produced to achieve the optimum profit (after satisfying all constraints). From the results below, Ron Garcia should recommend to produce only the following number of items: Product Product W0075C Product W0033C Product W005X Product W0007X # of units 1,100 250 0 600 Producing these items will maximize the profit of Mexicana to $59,900. To determine the utilization of optimum hours, we will substitute the optimal number of units for each product with the bill of labor (hours/unit) for each department. Please refer to table below: Process

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