Question
In: Operations Management
The supervisor of a manufacturing plant is trying to determine how many of two parts, Part...
The supervisor of a manufacturing plant is trying to determine how many of two parts, Part X and Part Y, are to be produced per day. Each part must be processed in three sections of the plant. The time required for the production along with the profit contribution for each part are given in the following table.
|
Time required (Minutes/Unit) |
||||
| Section 1 | Section 2 | Section 3 | Profit/Unit | |
| Part X |
50 |
30 |
18 |
$2 |
| Part Y |
80 |
45 |
22 |
$3 |
| Available time (minutes) |
3600 |
2500 |
1200 |
|
No more than 60 units of Part X and up to 70 units of Part Y can be produced per day. The company already has orders for 30 units of Part Y that must be satisfied.
a. Develop a spreadsheet model and find the solution that maximizes total profit contribution. What is the value of the objective function? Enter your answer without a dollar sign.
b. Based on your answer to Question 4, what quantity of Part X should be produced to maximize profit contribution?
c. Based on your answer to Question 4, what quantity of Part Y should be produced to maximize profit contribution?
Solutions
Expert Solution
a.Using excel solver,we find the optimal solution that maximizes total profit.
Total profit=E16=SUMPRODUCT(B13:B14,B8:B9)=$ 138
Objective function value=138
In excel,
B19=SUMPRODUCT(B13:B14,B4:B5)
B20=SUMPRODUCT(B13:B14,C4:C5)
B21=SUMPRODUCT(B13:B14,D4:D5)
B22=B13
B23=B14
B24=B14
b.Quantity of Part X to be produced=24 units
c.Quantity of Part X to be produced=30 units
keosha answered 2 weeks agoRelated Solutions
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