17. Mirza Manufacturing makes four electronic products, each of which comprises three main materials: magnet, wiring, and
Question:
17. Mirza Manufacturing makes four electronic products, each of which comprises three main materials: magnet, wiring, and casing. The products are shipped to three distribution centers in North America, Europe, and Asia. Marketing has specified that no location should receive more than the maximum demand and should receive at least the minimum demand. The material costs/unit are:
magnet—$0.59, wire—$0.29, and casing—$0.31. The following table shows the number of units of each material required in each unit of end product and the production cost per unit.
Product Production Cost/Unit Magnets Wire Casing A $0.25 4 2 2 B $0.35 3 1 3 C $0.15 2 2 1 D $0.10 8 3 2 Additional information is provided next.
Min Demand Product NA EU Asia A 850 900 100 B 700 200 500 C 1,100 800 600 D 1,500 3,500 2,000 Max Demand Product NA EU Asia A 2,550 2,700 300 B 2,100 600 1,500 C 3,300 2,400 1,800 D 4,500 10,500 6,000 Packaging and Shipping Cost/Unit Product NA EU Asia A $0.20 $0.25 $0.35 B $0.18 $0.22 $0.30 C $0.18 $0.22 $0.30 D $0.17 $0.20 $0.25 Unit Sales Revenue Product NA EU Asia A $4.00 $4.50 $4.55 B $3.70 $3.90 $3.95 C $2.70 $2.90 $2.40 D $6.80 $6.50 $6.90 Available Raw Material Magnet 120,000 Wire 50,000 Casing 40,000 Develop an appropriate linear optimization model to maximize net profit.
Step by Step Answer:
Business Analytics Methods Models And Decisions
ISBN: 9780132950619
1st Edition
Authors: James R. Evans