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A company is developing its weekly production plan. The company produces two products, A and B, which are processed in two departments. Setting up each

A company is developing its weekly production plan. The company produces two products, A and B, which are processed in two departments. Setting up each batch of A requires $60 of labor while setting up a batch of B costs $80. Each unit of A generates a profit of $17 while a unit of B earns a profit of $21. The company can sell all the units it produces. The data for the problem are summarized below.

Hours required by

Operation

A

B

Hours

Cutting

3

4

48

Welding

2

1

36

The decision variables are defined as:

xi = the amount of product i produced

yi = 1 if xi > 0 and 0 if xi = 0

A spreadsheet implementation of the problem is shown below.

Q1. What is the objective function for this problem?

a. Maximize: 17x 1 + 21x 2 - 60y 1 - 80y 2

b. Minimize: 60y 1 + 80y 2

c. Minimize: 17x 1 + 21x 2 - 60y 1 - 80y 2

d. Maximize: 17x 1 + 21x 2

Q2. What is the appropriate formula to use in cell E8 of the Excel implementation of the ILP model for this problem?

a. =SUMPRODUCT(B8:C8,B14:C14) - SUMPRODUCT(B5:C5,B7:C7)

b. =SUMPRODUCT(B5:C5,B7:C7) - SUMPRODUCT(B8:C8,B14:C14)

c. =SUMPRODUCT(B5:C5,B7:C7) - SUMPRODUCT(B8:C8,B15:C15)

d. =SUMPRODUCT(B5:C5,B7:C7) - B8:C8

Q3. Which of the following algebraic constraints creates the link between setting up to produce A's and making some A's for this problem?

a. x 1 - 18 y 1 > 0

b. x 1 - y 1 = 0

c. = if(x 1 > 0, y 1 = 1, y 1 = 0)

d. x 1 1

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 A Number to produce Unit profit Fixed cost Resources Cutting Welding Binary variables Linking constraints 17 B Product A Product B 60 Fixed charge problem 21 80 Hours required 3 4 2 1 D Used E Total profit: Available 48 36

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