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A firm that assembles computers and computer equipment, is about to start production of two new microcomputers (PC1 and PC2) . Each type of microcomputer

A firm that assembles computers and computer equipment, is about to start production of two new microcomputers (PC1 and PC2). Each type of microcomputer will require assembly time, inspection time and storage space.The amount of each of these resources that can be devoted to the production of the microcomputers is limited. The profit contributions from each computer, the resources required to produce each types of micro-computers and the maximum resources available to the firm are presented in the next slide. The following additional information is provided.

VariablesType 1 Type 2

1.Profit per unit 150 120

2.Assembly time/unit 10hrs 5hrs

3.Inspection time/unit 2hrs2hrs

4.Storage space/ unit 1 cubic feet 1 cubic feet

5.Resources available:

Assembly time 1000hrs

Inspection time 250 hrs

Storage space 100 cubic feet

questions based on the case given?

  1. Formulate the mathematical model using LP
  2. Solve the problem using the Simplex method and advise the manager of the firm what quantities of each of the micro-computers to produce in order to maximize the firm's profit. What will be the maximum profit?
  3. Solve the optimization problem using the Excel solver method, and confirm if your findings using the Simplex method converge with the Excel solver.
  4. In the report present the results of the Excel Solver and the Simplex method. Make sure that the Excel report shows the formula cells for checking your correctness.

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