4 Carco manufactures cars and trucks. Each car contributes $300 to profit and each truck, $400. The...
Question:
4 Carco manufactures cars and trucks. Each car contributes $300 to profit and each truck, $400. The
resources required to manufacture a car and a truck are shown in Table 53. Each day, Carco can rent up to 98 Type 1 machines at a cost of $50 per machine. The company now has 73 Type 2 machines and 260 tons of steel available.
Marketing considerations dictate that at least 88 cars and at least 26 trucks be produced. Let X1 = number of cars produced daily X2 = number of trucks produced daily M1 = type 1 machines rented daily To maximize profit, Carco should solve the LP given in Figure 11. Use the LINDO output to answer the following questions:
a If cars contributed $310 to profit, what would be the new optimal solution to the problem?
b What is the most that Carco should be willing to pay to rent an additional Type 1 machine for 1 day?
c What is the most that Carco should be willing to pay for an extra ton of steel?
d If Carco were required to produce at least 86 cars, what would Carco’s profit become?
e Carco is considering producing jeeps. A jeep contributes $600 to profit and requires 1.2 days on machine 1, 2 days on machine 2, and 4 tons of steel. Should Carco produce any jeeps?
Step by Step Answer:
Operations Research Applications And Algorithms
ISBN: 9780534380588
4th Edition
Authors: Wayne L. Winston