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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 di3erent 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
2,000,1,500,1,800,1,200,1,000 and 1,000 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 200120180200430260
Material Cost per Unit 3525404517060
Each of these auto parts needs to be tested before being sold. Specifically, there are three di3erent
tests the protocol requires each part passes, before completing the quality check. Appropriate testing
equipment is required for each test: T1, T2 and T3. Equipment T1 and T2 are available 100 hours per
week each, while T3 is available only 80 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 T1731261817
Test on T225321517
Test on T3513292
Specialized personnel is required to operate each of the test equipment. The variable labour costs are
16 per hour for equipment T1,12 per hour for T2, and 20 per hour for T3.
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.
[10 marks]
B) Suppose that the manufacturer is considering increasing only the available time for testing
equipment T2. What would the increase in the profit be if the available time went up to 110,120,
130? Can you generalise your answer for any increase 100+t where t is between 1 and 10? Should
the car part manufacturer consider increasing the available time for testing equipment T3,
instead?
[5 marks]
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.
[5 marks]
D) Explain why imposing the constraint that the decision variables must be integer is di3erent
(conceptually and mathematically) from rounding up a solution found without integer constraints.
[5 marks]

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