In: Finance
Problem 11-9 (Algorithmic)
Hawkins Manufacturing Company produces connecting rods for 4- and 6-cylinder automobile engines using the same production line. The cost required to set up the production line to produce the 4-cylinder connecting rods is $2300, and the cost required to set up the production line for the 6-cylinder connecting rods is $3100. Manufacturing costs are $14 for each 4-cylinder connecting rod and $18 for each 6-cylinder connecting rod. Hawkins makes a decision at the end of each week as to which product will be manufactured the following week. If there is a production changeover from one week to the next, the weekend is used to reconfigure the production line. Once the line has been set up, the weekly production capacities are 5800 6-cylinder connecting rods and 8400 4-cylinder connecting rods.
Let
x4 = the number of 4-cylinder connecting rods
produced next week
x6 = the number of 6-cylinder connecting rods
produced next week
s4= 1 if the production line is set up to
produce the 4-cylinder connecting rods; 0 if otherwise
s6 = 1 if the production line is set up to
produce the 6-cylinder connecting rods; 0 if otherwise
Using the decision variables x4 ands4, write a constraint that limits next week's
production of the 4-cylinder connecting rods to either 0 or 8400
units.
x4 s4
Using the decision variables x6 ands6, write a constraint that limits next week's
production of the 6-cylinder connecting rods to either 0 or 5800
units.
x6 s6
Write three constraints that, taken together, limit the
production of connecting rods for next week.
x4 s4
x6 s6
s4 +s6
Write an objective function for minimizing the cost of
production for next week.
Min x4 + x6 +s4 + s6
a). Constraint for limiting next week's production of 4-cylinder connecting rods is:
x4 <= 8,400s4
b). Constraint for limiting next week's production of 6-cylinder connecting rods is:
x6 <= 5,800s6
c). The first two contraints are the ones shown above:
x4 <= 8,400s4
x6 <= 5,800s6
3rd constraint is: s4 + s6 = 1 (constraint for setting up production line of one type of connecting rod)
d). Objective function to be minimized is:
Min. 14x4 + 18x6 + 2,300s4 + 3,100s6 (This minimizes total cost.)