Question

The Ashok Keyland truck company manufactures two specialized models of trucks, Model A01 and Model A02, in a single plant in India. Manufacturing operations were grouped into four departments: Engine assembly, metal stamping, Model A01 assembly, and Model A02 assembly. The following table gives details about the resource availability at the plant every month. Develop an optimal production strategy for the truck company.

Department	Machine-hours required per truck		Total machine-hours available per month
	Model A01	Model A02
Engine assembly	1	2	4000
Metal stamping	2	2	6000
Model A01 assembly	2	-	5000
Model A02 assembly	-	3	4500
Profit	3000	5000

Answer 1

Setup Excel model as follows:

EXCEL FORMULA:

Setup Solver Parameters as follows:

Click Solve to generate solution.

After that, values appear automatically in variable cells (highlighted in color)

Click OK

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Optimal production strategy is following:

Number of Model A01 trucks to produce every month = 2000

Number of Model A02 trucks to produce every month = 1000

Total profit = 11,000,000