Max 200DRB + 280DRW 20DRB + 25DRW < 40,000 Steel available 40DRB + 100DRW 120,000 Manufacturing minutes 60DRB + 40DRW < 96,000 Assembly minutes BRB, DRW > 0 What are the optimal solution and the total profit contribution? Another supplier offered to provide Deegan Industries with an additional 500 pounds of the steel alloy at $2 per pound. Should Deegan purchase the additional pounds of the steel alloy? Explain. Deegan is considering using overtime to increase the available assembly time. What would you advise Deegan to do regarding this option? Explain. Because of increased competition, Deegan is considering reducing the price of model DRB such

Algebra for College Students
10th Edition
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter11: Systems Of Equations
Section11.CT: Test
Problem 24CT
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UNIT 5 CHAPTER 8

  1. The Porsche Club of America sponsors driver education events that provide high-performance driving instruction on actual racetracks. Because safety is a primary consideration at such events, many owners elect to install roll bars in their cars. Deegan Industries manufactures two types of roll bars for Porsches. Model DRB is bolted to the car using existing holes in the car's frame. Model DRW is a heavier roll bar that must be welded to the car's frame. Model DRB requires 20 pounds of a special high-alloy steel, 40 minutes of manufacturing time, and 60 minutes of assembly time. Model DRW requires 25 pounds of the special high-alloy steel, 100 minutes of manufacturing time, and 40 minutes of assembly time. Deegan's steel supplier indicated that at most 40,000 pounds of the high-alloy steel will be available next quarter. In addition, Deegan estimates that 2000 hours of manufacturing time and 1600 hours of assembly time will be available next quarter. The profit contributions are $200 per unit for model DRB and $280 per unit for model DRW. The linear programming model for this problem is as follows: 

Max 200DRB + 280DRW

20DRB + 25DRW < 40,000 Steel available

40DRB + 100DRW 120,000 Manufacturing minutes

60DRB + 40DRW < 96,000 Assembly minutes

BRB, DRW > 0

  1. What are the optimal solution and the total profit contribution?
  2. Another supplier offered to provide Deegan Industries with an additional 500 pounds of the steel alloy at $2 per pound. Should Deegan purchase the additional pounds of the steel alloy? Explain.
  3. Deegan is considering using overtime to increase the available assembly time. What would you advise Deegan to do regarding this option? Explain.
  4. Because of increased competition, Deegan is considering reducing the price of model DRB such that the new contribution to profit is $175 per unit. How would this change in price affect the optimal solution? Explain.
  5. If the available manufacturing time is increased by 500 hours, will the shadow price for the manufacturing time constraint change? Explain.

Variable Cells

Model Variable

Name

Final Value

Reduced Cost

DRB

MODEL DRB

1000.000

0.000

DRW

MODEL DRW

800.000

0.000

 

Constraints

Constraints number

Name

Final Value

Shadow price

DRB

MODEL DRB

1000.000

0.000

Variable Cells

Model Variable

Name

Final Value

Reduced Cost

1

Steel available

40000.000

8.800

2

Manufacturing minutes

120000.000

0.600

3

Assembly minutes

92000.000

0.000

 

 

 

 

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