1 Alta Electronics 2 3 4 5 Solution value 6 Selling price per unit 7 Material...
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1 Alta Electronics 2 3 4 5 Solution value 6 Selling price per unit 7 Material cost per unit 8 Labor cost per unit 15 9 Profit 10 Constraints 10 Cor 11 Department 1 Dep 12 Department 2 13 Department 3 14 Min External HD 15 Min Standard DVD 16 Min Deluxe DVD 17 Min 1 GB Flash 18 Min 30 GB HD 19 Min 60 GB HD 20 Min 2GB Mem Stick 21 22 23 24 25 26 Minutes required in each department: 27 Department 1 10 28 Department 2 6 29 Department 3 3 30 31 32 33 34 35 36 X1 Regular DVD X2 Deluxe DVD 12 6 3 X3 1 GB Flash 4 5 4 X4 30 GB External HD 10 7 4 X5 60 GB External HD 12 9 5 X6 2 GB USB Memory Stick 5 4 2 LHS <-- Revenue <-- Mati Cost <-- Labor Cost <-- Objective Sign RHS Cost $15 $12 $18 3-11 (High-tech product mix) Alta Electronics Incorporated spe- cializes in external memory expansion devices for PCs. Alta manufactures the following six peripheral devices for PCs in its Calgary plant: regular external DVD writers, deluxe exter- nal DVD writers, 1 GB flash memory cards, 30 GB external hard drives, 60 GB external hard drives, and 2 GB USB mem- ory sticks. Each of these technical products requires time, in minutes, to be processed in three departments (covering assembly, testing etc.), as shown in the table above. The first two departments are available 120 hours per week. The third department is only available for 100 hours each week. Since the demand for all six external storage devices is very large, Alta Electronics believes that it can sell as many units of each product as it can manufacture. The table that follows summarizes the revenue and material cost for each product: REVENUE PER UNIT SOLD (5) MATERIAL COST PER UNIT (51) DEVICE 200 35 Regular external DVD writer Deluxe external DVD writer 240 45 1 GB flash memory card 80 7 30 GB external HD 180 45 60 GB external HD 230 48 2 GB memory stick 90 6 In addition, variable labour costs are $15 per hour for department 1, $12 per hour for department 2, and $18 per hour for department 3. Alta also has the following produc- tion requirements based on existing standing weekly orders: At least 43 external hard drives must be produced each week At least 20 units of each of the six products must be produced each week. Alta Electronics wants to maximize its profits. (a) Formulate this problem as an LP model. (b) Solve the problem using Excel, specifying the best weekly product mix and the maximum weekly profit. 1 Alta Electronics 2 3 4 5 Solution value 6 Selling price per unit 7 Material cost per unit 8 Labor cost per unit 15 9 Profit 10 Constraints 10 Cor 11 Department 1 Dep 12 Department 2 13 Department 3 14 Min External HD 15 Min Standard DVD 16 Min Deluxe DVD 17 Min 1 GB Flash 18 Min 30 GB HD 19 Min 60 GB HD 20 Min 2GB Mem Stick 21 22 23 24 25 26 Minutes required in each department: 27 Department 1 10 28 Department 2 6 29 Department 3 3 30 31 32 33 34 35 36 X1 Regular DVD X2 Deluxe DVD 12 6 3 X3 1 GB Flash 4 5 4 X4 30 GB External HD 10 7 4 X5 60 GB External HD 12 9 5 X6 2 GB USB Memory Stick 5 4 2 LHS <-- Revenue <-- Mati Cost <-- Labor Cost <-- Objective Sign RHS Cost $15 $12 $18 3-11 (High-tech product mix) Alta Electronics Incorporated spe- cializes in external memory expansion devices for PCs. Alta manufactures the following six peripheral devices for PCs in its Calgary plant: regular external DVD writers, deluxe exter- nal DVD writers, 1 GB flash memory cards, 30 GB external hard drives, 60 GB external hard drives, and 2 GB USB mem- ory sticks. Each of these technical products requires time, in minutes, to be processed in three departments (covering assembly, testing etc.), as shown in the table above. The first two departments are available 120 hours per week. The third department is only available for 100 hours each week. Since the demand for all six external storage devices is very large, Alta Electronics believes that it can sell as many units of each product as it can manufacture. The table that follows summarizes the revenue and material cost for each product: REVENUE PER UNIT SOLD (5) MATERIAL COST PER UNIT (51) DEVICE 200 35 Regular external DVD writer Deluxe external DVD writer 240 45 1 GB flash memory card 80 7 30 GB external HD 180 45 60 GB external HD 230 48 2 GB memory stick 90 6 In addition, variable labour costs are $15 per hour for department 1, $12 per hour for department 2, and $18 per hour for department 3. Alta also has the following produc- tion requirements based on existing standing weekly orders: At least 43 external hard drives must be produced each week At least 20 units of each of the six products must be produced each week. Alta Electronics wants to maximize its profits. (a) Formulate this problem as an LP model. (b) Solve the problem using Excel, specifying the best weekly product mix and the maximum weekly profit.
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Defination Variable Qty of each product Constraint No of labor hours available for e... View the full answer
Related Book For
Managing Controlling and Improving Quality
ISBN: 978-0471697916
1st edition
Authors: Douglas C. Montgomery, Cheryl L. Jennings, Michele E. Pfund
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