Question
I need help with solving and explaining this using Excel Solver. Specifically Part B and the assignment notes below: Klein Industries manufactures three types of
I need help with solving and explaining this using Excel Solver. Specifically Part B and the assignment notes below:
Klein Industries manufactures three types of portable air compressors: small, medium, and large, which have unit profits of $20.50, $34.00, and $42.00, respectively. The projected monthly sales are: Small Medium Large Minimum 14,000 6,200 2,600 Maximum 21,000 12,500 4,200 The production process consists of three o activities: bending and forming, welding, and painting. The amount of time in minutes needed to process each product in each department is shown below: Small Medium Large Available Time Bending/ Forming 0.4 0.7 0.8 23,400 Welding 0.6 1.0 1.2 23,400 Painting 1.4 2.6 3.1 46,800 How many of each type of air compressor should the company produce to maximize profit? a. Formulate and solve a linear optimization model using the auxiliary variable cells method and write a short memo to the production manager explaining the sensitivity information. b. Solve the model without the auxiliary variables and explain the relationship between the reduced costs and the shadow prices found in part a. Statistics and Probability You need to relax the conditions on the variables that you had for part a) and solve the optimization problem. For example, you may have a constraint a + b < 50 where 1 < a < 2. The first one is the constraint and you will get rid of the condition 1 < a < 2 and run the analysis for the second part. Note: Relaxing the conditions on the number of units will help to determine if profits can be maximized.
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