DSO547- Designing Spreadsheet-Based Business Models Linear Programming Practice 2
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Practice 2
Linear Programming
DSO547- Designing Spreadsheet-Based Business Models
Hiroshi Ochiumi
In all questions assume we can produce any fraction of a unit.
1) A firm that assembles computers and computer equipment is about to start production of two new types of microcomputers. Each type will require assembly time, inspection time, and storage space. The amounts of each of these resources that can be devoted to the production of the microcomputers are limited. The manager of the firm would like to determine the quantity of each microcomputer to produce in order to maximize the profit generated by sales of these microcomputers. In order to develop a suitable model of the problem, the manager has met with design and manufacturing personnel. As a result of those meetings, the manager has obtained the following information:
Type 1 PC Type 2 PC
Profit per unit $60 $50
Assembly time per unit 4 hours 10 hours
Inspection time per unit 2 hours 1 hour
Storage space per unit 3 cubic feet 3 cubic feet
The manager also has acquired information on the availability of company resources. These amounts are:
Amount
Resource available
Assembly time 100 hours
Inspection time 22 hours
Storage space 39 cubic feet
The manager met with the firm’s marketing manager and learned that demand for the microcomputers was such that whatever combination of these two types of microcomputers is produced, all of the output can be sold.
2)Your software company has launched the latest version of its web browser, "Java Cruise 4.0." As sales manager, you are planning to promote Java Cruise 4.0 by sending sales forces to software conventions running concurrently in Saint Louis and Detroit. You have 6 representatives available at each of your Little Rock, Ark. and
Urbana, Ill. branches, and you would like to send at least 5 to the Saint Louis convention and at least 4 to the Detroit convention. The Saint Louis convention will last for three days, while the Detroit convention will last for two days. Air fares (per person) and hotel accommodation costs (per person) are shown in the following figure.
How many representatives should you send from each branch to each convention in order to minimize the total (air travel and accommodation) cost?
3) RACE is a computer manufacturer that has assembly operations in Mexico and China. It produces laptops and desktops. RACE sells its products primarily in USA and Canada. Table 1 gives the monthly demands for each product in each market. Table 2 gives the minutes of production time available at each plant in a month. The time to assembly one laptop is 3 minutes,while the time to assemble one desktop is 2 minutes. Due to transportation costs, duties and tariffs, transportation delays, production efficiencies, etc, the unit profit depends on the source and destination. Table 3 gives the profit per unit sold in each market based on the plant in which that unit is produced. Formulate a linear program that will maximize the profits and solve it.
|
USA |
Canada |
Laptops |
6600 |
3000 |
Desktops |
14500 |
7200 |
Table 1. Demand : Number of units per month in each market
|
Time Available (minutes /month) |
Mexico |
43000 |
China |
36000 |
Table 2. Production Time Availability in Each Plant
Source \ Destination |
USA |
Canada |
Mexico |
300 |
225 |
China |
275 |
300 |
Table 3a. Profit per unit ($s) (LAPTOPS) based on source and destination
Source \ Destination |
USA |
Canada |
Mexico |
245 |
180 |
China |
200 |
230 |
Table 3b. Profit per unit ($s) (DESKTOPS) based on source and destination.
2023-12-09