In: Operations Management
The Wheel Fun corporation produces roller skates, skateboards, and inline skates, and also sells replacement components. They can combine 8 regular wheels, 2 plates, and 2 boots to make a pair of roller skates, or they can combine 4 regular wheels, 2 plates, and a board to make a skateboard. They can combine 8 large wheels, 2 plates, and 2 boots to make inline skates. They can sell regular or large wheels for $2 profit; they can sell one boot for $6 profit; they can sell boards for a $5 profit, and they cannot sell plates for a profit. Selling a pair of roller skates yields a $40 profit, selling a skateboard yields a $20 profit, and selling inline skates yields a $30 profit. Their current stock is 600 regular wheels, 60 large wheels, 500 plates, 80 boots, and 30 boards. Ignoring integrality concerns, formulate a linear program to decide what Wheel Fun should sell, to maximize profit from its stock of components.
The Wheel Fun corporation produces roller skates, skateboards, and inline skates, and also sells replacement components. They can combine 8 regular wheels, 2 plates, and 2 boots to make a pair of roller skates, or they can combine 4 regular wheels, 2 plates, and a board to make a skateboard. They can combine 8 large wheels, 2 plates, and 2 boots to make inline skates. They can sell regular or large wheels for $2 profit; they can sell one boot for $6 profit; they can sell boards for a $5 profit, and they cannot sell plates for a profit. Selling a pair of roller skates yields a $40 profit, selling a skateboard yields a $20 profit, and selling inline skates yields a $30 profit. Their current stock is 600 regular wheels, 60 large wheels, 500 plates, 80 boots, and 30 boards. Ignoring integrality concerns, formulate a linear program to decide what Wheel Fun should sell, to maximize profit from its stock of components.
Ans:
The corporation sells following items
Roller skates - 8 regular wheels, 2 plates and 2 boots -> $40 profit
Skateboards - 4 regular wheels, 2 plates and 1 board -> $20 profit
Inline skates - 8 large wheels, 2 plates and 2 boots -> $30 profit
Profit/item
Regular wheels - $2
Large wheels - $2
Boot - $6
Boards - $5
Plates - $0
Stock: 600 regular wheels, 60 large wheels, 500 plates, 80 boots, 30 boards
Let fun wheel make x, y and z quantities of roller skates, skateboards and inline skates
Now we have to make roller skates, skateboards and inline such that the total profit is maximized
The total profit for these items = 40x + 20y + 30z
Further, total regular wheels used = 8x + 4y <= 600
Total large wheels used = 8z <= 60
Total plates used = 2x + 2y + 2z <= 500
Total boots used = 2x + 2z <= 80
Total boards used = y <= 30
Also, any remainig inventory of regular wheels, large, boots and boards will be sold at profit of 2, 2, 6 and 5 per unit respectively
Remaining regular wheels = 600 - (8x + 4y)
Remaining large wheels = 60 - 8z
Remaining boots = 80 - 2x - 2z
Remaining boards = 30 - y
So the LP is formulated as given below:
Maximise total profit = 40x + 20y + 30z + 2(600 - 8x - 4y) + 2(60-8z) + 6(80-2x-2z) + 5(30-y)
= 40x + 20y + 30z + 1200 - 16x - 8y + 120 - 16z + 480 -12x - 12z + 150 - 5y
= 12x + 7y + 2z + 1950
Subject to
8x + 4y <= 600
8z <= 60
2x + 2y + 2z <= 500
2x + 2z <= 80
y <= 30
x,y,z >= 0