Question
NEWGEN is a company specializing in manufacturing special purpose computer: A decision must be made: How many computers should be produced next month at Konza
NEWGEN is a company specializing in manufacturing special purpose computer: A decision must be made: How many computers should be produced next month at Konza Plant. The two types of computers considered are: CC-1 which requires 300 days of labor and $ 10,000 in materials, and the CC-2 which requires 500 days of labor and $ 15,000 in materials. The profit contribution of each CC-1 is $ 8,000 whereas that of each CC-2 is $ 12,000. The plant has a capacity of 200,000 working days per month, and the material budget of kshs 8,000,000 per month. Marketing requires that at least 100 units of the CC-1 and at least 200 units of the CC-2 be produced each month. The problem is to maximize the company's profits by determining how many units of the CC-1 and how many units of the CC-2 should be produced each month.
Required:
a) Identify the decision variables and result variable for the NEWGEN Corporation problem (6 marks
b) Identify the objective for the above problem, and write a formula for it (2 marks)
c) Identify the constraints for the above problem and write the formula for each constraint (2 marks)
d) Develop a model for the NEWGEN problem in MS Excel and solve it. (10 marks
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