In: Operations Management
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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.
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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