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1. Eletsa Bhd. produces four types of electric bikes, each on a separate assembly line. The respective capacities of the lines are 120, 100, 200

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1. Eletsa Bhd. produces four types of electric bikes, each on a separate assembly line. The respective capacities of the lines are 120, 100, 200 and 150 bikes per day. Type A bike uses 8 units of a certain electronic component, type B bike uses 5 units, type C bike uses 4 units and type D bike uses 6 units. The supplier of the electronic component can provide 2000 units a day. The prices per bike for the respective bikes are RM 1200, RM 800, RM 500 and RM 600. a Formulate a linear programming model for this problem to determine the optimum daily production mix. [3 marks] b. Use a software package to solve for an optimal solution. Attached the output in your answer script and from the output obtained, state: i) the optimal solutions, ii) the dual prices, ii) the feasibility ranges, iv) the optimality ranges. [9 marks) C. The present production schedule (optimal solution) meets Eletsa's needs. However, because of the market competition, Eletsa may need to lower the price of type B bike. What is the lowest price that can be implemented without changing the present production schedule? [1 mark] d. From the optimal solution obtained in (b), type D bike is currently not produced. By how much should its price be increased to be included in the production schedule? [1 mark] Due to the current pandemic crisis, Eletsa has decided to slash the price of all bike types by 15%. Use sensitivity analysis to determine if the optimum solution remains unchanged. [5 marks] f. Additional electronic components could be bought at RM 130 per unit. What would you recommend to the company? Justify your answer. [1 mark]

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