Question

In: Operations Management

PLEASE SHOW STEP BY STEP FOR BOTH ANSWERS. The Electrotech Corporation manufactures two industrial-sized electrical devices:...

PLEASE SHOW STEP BY STEP FOR BOTH ANSWERS.

The Electrotech Corporation manufactures two industrial-sized electrical devices: generators and alternators. Both of these products require wiring and testing during the assembly process. Each generator requires 2 hours of wiring and 1 hour of testing and can be sold for a $250 profit. Each alternator requires 3 hours of wiring and 2 hours of testing and can be sold for a $150 profit. There are 260 hours of wiring time and 140 hours of testing time available in the next production period and Electrotech wants to maximize profit.

  1. Formulate the LP model for this problem.
  2. Create the spreadsheet model and use Solver to solve the problem.

Solutions

Expert Solution

Question -- 1:

Decision Variables:

Let number of generators = x1

Number of alternators = x2

Objective Function:

Electrotech Corporation wants to maximize its profit.

Profit from generator = $250

Profit from alternator = $150

Hence the objective function is:

Maximize 250*x1 + 150*x2

Constraints:

Each generator requires 2 hours of wiring and 1 hour of testing.

Each alternator requires 3 hours of wiring and 2 hours of testing

Available time for wiring is 260 hours.

Available time for testing is 140 hours

We cant use more time than available for wiring and testing.

2*x1 + 3*x2 <= 260 (For Wiring)

1*x1 + 2*x2 <= 140 (For Testing)

The number of generators and alternators cant be negative.

x1 >= 0

x2 >= 0

Question -- 2:

Putting Everything in Excel:

Solver Parameters:

Optimal Solution:

Generators

Alternators

x1

x2

130

0

Hence, Electrotech Corporation should manufacture 130 units of Generator only. The Maximum profit is $32500.

.

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