Question
ABC Company Limited is a conglomerate with several businesses in Canada including apparel, grocery stores, and pharmacies that sell medical products, food, and beauty supplies.
ABC Company Limited is a conglomerate with several businesses in Canada including apparel, grocery stores, and pharmacies that sell medical products, food, and beauty supplies. You have been hired as a consultant for ABC Company Limited to help the company make several decisions to improve efficiency and optimize the use of limited resources. You must solve these decisions using linear programming, and include your models in excel. Make sure to state your conclusion
Apparel Production
The company has one particular plant where both dresses and jeans are manufactured. The firm has some flexibility to move manufacturing effort between dresses and jeans production, with the current procedures enforcing limits on the maximum and minimum quantity of each product that can be created.
Known constraints are provided below:
Machine hours available (total): Minimum 39,000 hours Maximum 40,000 hours.
The quantity of dresses that can be manufactured: Minimum 30,000 dresses to Maximum 60,000 dresses.
The quantity of jeans that can be manufactured: Minimum 20,000 pairs of jeans to Maximum 40,000 pairs of jeans.
For every machine hour, the labour cost associated with this is $6.00 per machine hour.
Other factors are as follows
Manufacturing Time | Material Cost | |
Per Dress | 0.5 Hours | $2 |
Per Pair of Jeans | 0.3 Hours | $1.25 |
ABC Company Limited believes it can sell each dress for $14.00 and each pair of jeans for $11.00. Moreover, the firm believes that cost of material and labour costs will be relatively consistent in future periods. The corporate tax rate is 28%. ABC Company Limited wants to determine the ideal number of dresses and jeans to manufacture that will maximize the facilitys net profit after taxes.
Meat Production
ABC Company Limited has just started to operate its own cattle farms to generate beef and milk products. The company is trying to decide what to feed its cattle. The company is considering utilizing a combination of cattle feeds available from Ontario suppliers. The company would like to feed the cattle at minimum cost while also ensuring each cattle receives an adequate supply of calories and nutrients. The cost, calorie content, and nutrient content of each feed is as follows: Contents Feed #1 - Globo Feed #2 - Cowtacular Calories (per pound) 800 1,000 Nutrients (per pound) 140 units 70 units Cost (per pound) $0.40 $0.80 Each cattle requires a minimum of 8,000 calories per day and at least 700 units of nutrients. A further constraint is that no more than 1/3 of the diet (by weight) can consist of Feed #1 Globo, since it contains an ingredient that can be toxic if consumed in too large of a quantity
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