Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An automobile company is considering manufacturing three types of cars ( compact , midsize, and large ) and two types of minivans ( midsize and

An automobile company is considering manufacturing three types of cars (compact, midsize, and large) and two types of minivans (midsize and large). The resources required and the profit contributions yielded by each type of vehicle are shown in Exhibit 1. At present, 6500 tons of steel and 65,000 hours of labor are available. If any vehicles of a given type are produced, production of that type of vehicle is economically feasible only if at least a minimal number of that type are produced. These minimal numbers are also listed in Exhibit 1.
Develop an Integer Programming model to obtain an optimal production schedule. What will be the optimal solution if the steel availability changes to 6000 tons?
Vehicle Type
Steel (tons)/unit
Labour (hours)/unit
Compact
Car
1.5
30
Exhibit 1
Mid-Size
Car
3
Large Car
Mid-Size
Minivan
Large
Minivan
5
25
40
6
45
8
55
Minimum Production (if any)
1000
1000
1000
200
200
Profit Contribution per unit (')
100000
125000
150000
275000
350000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Project Management A Managerial Approach

Authors: Jack R. Meredith, Samuel J. Mantel Jr.

8th edition

470533021, 978-0470533024

More Books

Students also viewed these General Management questions