Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A. A small manufacturing factory has one of its production lines with four operations which provides an excess production capacity. The manager of the factory
A. A small manufacturing factory has one of its production lines with four operations which provides an excess production capacity. The manager of the factory is studying allocating the excess capacity for producing one or more of its other four products. The following table shows the available production capacity on each operation and the required production time per unit for the four products on each of the operations. Required production time per unit of Available Capacity Type of Operations Product-1 Product-2 Product-3 Product-4 (hours/ Operation /week) 540 Operation - 1 Operation -2 Operation - 3 560 620 700 Operation-4 The marketing department estimated that the potential sales from the first product may not exceed the upper limit of the production rate. The potential sales from the second third and fourth products cannot exceed 40,35 and 45 units per week, respectively. The financial department stated that the total cost of producing 1 unit of each product is based directly on the production time. It estimated the cost per unit of products 1, 2, 3 and 4 are AED 50, 75, 90 and 100, respectively. If the selling price per unit for products 1, 2, 3 and 4 are AED 75, 95, 105 and 130 respectively. As a business analyst: 1. Formulate the Linear Programming Model for this problem to help the factory manager to determine the production quantities with maximum total profit 2. Implement the QM Software to solve this Linear programming model and propose your optimal production plan so that the total profit is maximum 3. Discuss your production plan with your justifications. A. A small manufacturing factory has one of its production lines with four operations which provides an excess production capacity. The manager of the factory is studying allocating the excess capacity for producing one or more of its other four products. The following table shows the available production capacity on each operation and the required production time per unit for the four products on each of the operations. Required production time per unit of Available Capacity Type of Operations Product-1 Product-2 Product-3 Product-4 (hours/ Operation /week) 540 Operation - 1 Operation -2 Operation - 3 560 620 700 Operation-4 The marketing department estimated that the potential sales from the first product may not exceed the upper limit of the production rate. The potential sales from the second third and fourth products cannot exceed 40,35 and 45 units per week, respectively. The financial department stated that the total cost of producing 1 unit of each product is based directly on the production time. It estimated the cost per unit of products 1, 2, 3 and 4 are AED 50, 75, 90 and 100, respectively. If the selling price per unit for products 1, 2, 3 and 4 are AED 75, 95, 105 and 130 respectively. As a business analyst: 1. Formulate the Linear Programming Model for this problem to help the factory manager to determine the production quantities with maximum total profit 2. Implement the QM Software to solve this Linear programming model and propose your optimal production plan so that the total profit is maximum 3. Discuss your production plan with your justifications
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started