Do the following
three problems. Use the graph paper
provided for the linear programming problems.
You may use your text, notes, and a calculator.
The
following information is for problems 1 and 2.
A bicycle manufacturer produces two different models of bicycle: the
“Best” model and the “Excelsior” model.
2. Each Best model requires two hours
of assembly time, one hour of calibration time, and thirty minutes of
testing. Each Excelsior model requires
2.5 hours of assembly, one hour of calibration and 45 minutes of testing. Current capacity is 105 hours of assembly, 50
hours of calibration and 30 hours of testing per day.
If
each Best model earns $100 profit and each Excelsior model earns $140 profit,
find the optimal number of each model the manufacturer should produce and his
total daily profit.
3. Annual demand for its Best model
is 3600 units. The cost of carrying a
Best model is $10 per year and the production setup cost of this model is
$500. If the manufacturer produces 20
units per day and demand during the production phase is 15 units, find the
optimal production per run, the maximum stock, and the total annual inventory
cost.
Setups per year
Units per production run
Annual inventory costs
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3. Find the minimum cost solution for the
following transportation problem. |
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Also calculate the total cost. |
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Destination |
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Origin |
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Total |
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$5 |
$3 |
$4 |
$8 |
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5000 |
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$7 |
$8 |
$12 |
$2 |
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6000 |
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$3 |
$6 |
$10 |
$8 |
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2500 |
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Total |
4000 |
4000 |
2500 |
2000 |
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