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An auto part manufacturer sells six di 3 erent parts to automobile companies: spot lights ( A ) , break lights ( B ) ,
An auto part manufacturer sells six dierent parts to automobile companies: spot lights A break
lights B headlights C thermostat D fan ditch E and battery F Demand is expected to be within
and units of each of the auto parts, respectively. The table that
follows summarizes the revenues and material costs for each product:
Auto Parts Produced
A B C D E F
Price per Unit
Material Cost per Unit
Each of these auto parts needs to be tested before being sold. Specifically, there are three dierent
tests the protocol requires each part passes, before completing the quality check. Appropriate testing
equipment is required for each test: T T and T Equipment T and T are available hours per
week each, while T is available only hours per week. The time in minutes required per device for
each of the three tests is reported in the following table:
Electronic Devices Produced
A B C D E F
Test on T
Test on T
Test on T
Specialized personnel is required to operate each of the test equipment. The variable labour costs are
per hour for equipment T per hour for T and per hour for T
A Considering the manufacturer intends to maximize profit, write a linear program for this problem
and find a solution with Excel Solver. Reflect on whether to impose a constraint on the nature of
the decision variables.
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B Suppose that the manufacturer is considering increasing only the available time for testing
equipment T What would the increase in the profit be if the available time went up to
Can you generalise your answer for any increase t where t is between and Should
the car part manufacturer consider increasing the available time for testing equipment T
instead?
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C How would your solution change if the manufacturer only produced spot lights A break lights
B headlights C and thermostat D Exaplain your answer.
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D Explain why imposing the constraint that the decision variables must be integer is dierent
conceptually and mathematically from rounding up a solution found without integer constraints.
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