9. The Ace Manufacturing Company has orders for three similar products: Orders Product (units) A 2000 500 1200 B Three machines are available for the manufacturing operations. All three machines can produce all the products at the same production rate. However, due to varying defect per- centages of each product on each machine, the unit costs of the products vary depending on the machine used. Machine capacities for the next week and the unit costs are as follows: Сараcity (units) Product Machine Machine А B 1500 $1.00 $1.30 $1.10 $1.20 $1.40 $1.00 $0.90 $1.20 $1.20 1 1500 1000 2 Use the transportation model to develop the minimum cost production schedule for the products and machines. Show the linear programming formulation. 123
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- Problem 6-09 (Algorithmic) The Ace Manufacturing Company has orders for three similar products: Product Order (Units) A 1750 B 500 C 1100 Three machines are available for the manufacturing operations. All three machines can produce all the products at the same production rate. However, due to varying defect percentages of each product on each machine, the unit costs of the products vary depending on the machine used. Machine capacities for the next week and the unit costs are as follows: Machine Capacity (Units) 1 1550 2 1450 3 1150 Product Machine A B C 1 $0.80 $1.30 $0.70 2 $1.40 $1.30 $1.50 3 $0.80 $0.80 $1.20 Use the transportation model to develop the minimum cost production schedule for the products and machines. Show the linear programming formulation. If the constant is "1" it must be entered in the box. If your answer is zero enter "0". The linear programming formulation and optimal solution are shown. Let xij = Units of…A manufacturing fi rm has discontinued production of a certain unprofi table product line.Considerable excess production capacity was created as a result. Management is consideringdevoting this excess capacity to one or more of three products: X1, X2, and X3.Machine hours required per unit areProductMachine Type X1 X2 X3Milling machine 8 2 3Lathe 4 3 0Grinder 2 0 1The available time in machine hours per week isMachine Hours per WeekMilling machines 800Lathes 480Grinders 320The salespeople estimate they can sell all the units of X1 and X2 that can be made. Butthe sales potential of X3 is 80 units per week maximum.Unit profi ts for the three products areUnit ProfitsX1 $20X2 6X3 8a. Set up the equations that can be solved to maximize the profi t per week.b. Solve these equations using the Excel Solver.c. What is the optimal solution? How many of each product should be made, and whatshould the resultant profi t be?d. What is this situation with respect to the machine groups? Would they…linear programming A small company works 10 hours a day, making two types of products from 3 specific processes. The times required in each of the processes and the profits generated by type of product are shown in the table: Product Process 1 Process 2 Process 3 Utility 1 10 6 8 $2.00 2 5 20 10 $3.00 consider that x1 and x2 are the quantities of the product 1 and 2. Indicate: Objective function Restriction of the process 1 Restriction of the process 2 Restriction of the process 3 Restriction of nonnegativity Optimal solution of x1, x2 and z
- Design capacity is the ability of the company to produce the quantity of goods and services within a particular period of time when the company have best condition to produce and when the company have unlimited resources. These resource's includes- Men, Machinery, Material etc. It shows the maximum capacity of the company to produce. Effective capacity refers to the ability of the company to produce maximum quantity within a particular period of time to achieve in current production condition and current resources. It shows the real outcome capacity of the firm when the company produce within their own current condition of their production. Question Why is the capacity design important?Design capacity is the ability of the company to produce the quantity of goods and services within a particular period of time when the company have best condition to produce and when the company have unlimited resources. These resource's includes- Men, Machinery, Material etc. It shows the maximum capacity of the company to produce. Effective capacity refers to the ability of the company to produce maximum quantity within a particular period of time to achieve in current production condition and current resources. It shows the real outcome capacity of the firm when the company produce within their own current condition of their production. In design capacity it is assume that the company will produce in best and ideal condition to produce goods and services while in Effective capacity it is assume that company will produce in current operating conditions. In design capacity it is assume that the company have unlimited resource's. It means these resource's include:- Men,…The Stratton Company produces two basic types of plastic pipe. Three resources are crucial to the output of pipe: extrusion hours, packaging hours, and a special additive to the plastic raw material. The following data represent next week’s situation. All data are expressed in units of 100 feet of pipe. Product Resource Type 1 Type 2 Resource Availability Extrusion Packaging Additive mix 4 hr 2 hr 2 lb 6 hr 2 hr 1 lb 48 hr 18 hr 16 lb The contribution to profits and overhead per 100 feet of pipe is $34 for type 1 and $40 for type 2. Formulate a linear programming model to determine how much of each type of pipe should be produced to maximize contribution to profits and to overhead, assuming that everything produced can be sold.
- 1. A furniture company manufactures two products, P1 and P2, through a two-fold operation: automatic (machine-assisted) processing and manual processing for finishing. The following gives the number of minutes required for each product. Automatic Manual P1 16 20 P2 20 33 For the coming week, the company has 46 hours for the automatic operation and 42 hours for the manual operation. It was estimated that an hour of machine time costs $15 and finishing, $7. Any idle time in between is considered negligible. P1 and P2 are sold at $24 and $36 each, respectively. The company is obliged to produce 20 Pl's for a particular customer next week. Formulate the appropriate LP model to achieve optimal results in the coming week. Use x's for your decision variables.A product can be produced on four different machines.Each machine has a fixed setup cost, variable productioncosts per-unit-processed, and a production capacity given inTable 15. A total of 2,000 units of the product must beproduced. Formulate an IP whose solution will tell us howto minimize total costs.Machine Fixed Cost ($) per Unit (S) Capacity1 1,000 20 9002 920 24 1,0003 800 16 1,2004 700 28 1,600Parsa Real Estate Parsa Real Estate is a company that buys and rents real estate. The company is looking into buying an office building for $1M. The building has 10,000 square feet of rentable office space. The company analysts predict that they can rent the office space for $6 per square foot per month, but demand is a function of price in the following way: % Occupied = 2 - 0.2*Rent (Rent is in dollars per square foot per month. Also, at $6.00, Oscar thinks he can fill about 80% of the office space.) The building needs to be maintained (security, insurance, maintenance, etc.), which costs $10,000 per month regardless of occupancy. Also, there is a variable cost of $2 per month for each square foot occupied. Define the return on invested capital as the ratio of the profits (PER YEAR) and the invested capital. You can draw an ROIC tree in the same way that we drew a KPI tree in class. Simply have the ROIC as “the root” of the tree instead of profits. Then answer the following question.…
- A company makes four products that have the following characteristics:Product A sells for $75 but needs $40 of materials to produce; Product B sells for $90 but needs $65 ofmaterials to produce; Product C sells for $110 but needs $80 of materials to produce; Product D sells for$135 but needs $105 of materials to produce. The processing requirements for each product on each ofthe four machines are shown in the table. Work centers W, X, Y, and Z are available for 5 days per week, 1 shift per day (8 hrs.) and have no setuptime when switching between products. Market demand is 50 As, 60 Bs, 70 Cs, and 80 Ds per week. In thequestions that follow, the traditional method refers to maximizing the contribution margin per unit foreach product, and the bottleneck method refers to maximizing the contribution margin per minute at thebottleneck for each product. Each worker is paid $15 per hour and is paid for an entire week, regardlessof how much the worker is used. Using the bottleneck method,…A company makes four products that have the following characteristics:Product A sells for $75 but needs $40 of materials to produce; Product B sells for $90 but needs $65 ofmaterials to produce; Product C sells for $110 but needs $80 of materials to produce; Product D sells for$135 but needs $105 of materials to produce. The processing requirements for each product on each ofthe four machines are shown in the table. Work centers W, X, Y, and Z are available for 5 days per week, 1 shift per day (8 hrs.) and have no setuptime when switching between products. Market demand is 50 As, 60 Bs, 70 Cs, and 80 Ds per week. In thequestions that follow, the traditional method refers to maximizing the contribution margin per unit foreach product, and the bottleneck method refers to maximizing the contribution margin per minute at thebottleneck for each product. Each worker is paid $15 per hour and is paid for an entire week, regardlessof how much the worker is used. Using the traditional…A company makes four products that have the following characteristics:Product A sells for $75 but needs $40 of materials to produce; Product B sells for $90 but needs $65 ofmaterials to produce; Product C sells for $110 but needs $80 of materials to produce; Product D sells for$135 but needs $105 of materials to produce. The processing requirements for each product on each ofthe four machines are shown in the table. Work centers W, X, Y, and Z are available for 5 days per week, 1 shift per day (8 hrs.) and have no setuptime when switching between products. Market demand is 50 As, 60 Bs, 70 Cs, and 80 Ds per week. In thequestions that follow, the traditional method refers to maximizing the contribution margin per unit foreach product, and the bottleneck method refers to maximizing the contribution margin per minute at thebottleneck for each product. Each worker is paid $15 per hour and is paid for an entire week, regardlessof how much the worker is used. Using the bottleneck method,…