Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Photon Technologies, Inc., a manufacturer of batteries for mobile phones, signed a contract with a large electronics manufacturer to produce three models of lithium-ion

image text in transcribedimage text in transcribed

Photon Technologies, Inc., a manufacturer of batteries for mobile phones, signed a contract with a large electronics manufacturer to produce three models of lithium-ion battery packs for a new line of phones. The contract calls for the following: Battery Pack PT-100 PT-200 PT-300 Production Quantity 200,000 100,000 150,000 Photon Technologies can manufacture the battery packs at manufacturing plants located in the Philippines and Mexico. The unit cost of the battery packs differs at the two plants because of differences in production equipment and wage rates. The unit costs for each battery pack at each manufacturing plant are as follows: Plant Product Philippines Mexico PT-100 $0.95 $0.98 $0.98 $1.06 PT-200 PT-300 $1.34 $1.15 The PT-100 and PT-200 battery packs are produced using similar production equipment available at both plants. However, each plant has a limited capacity for the total number of PT-100 and PT-200 battery packs produced. The combined PT-100 and PT-200 production capacities are 175,000 units at the Philippines plant and 160,000 units at the Mexico plant. The PT-300 production capacities are 75,000 units at the Philippines plant and 100,000 units at the Mexico plant. The cost of shipping from the Philippines plant is $0.21 per unit, and the cost of shipping from the Mexico plant is $0.08 per unit. (a) Develop a linear program that Photon Technologies can use to determine how many units of each battery pack to produce at each plant to minimize the total production and shipping cost associated with the new contract. If the constraint is one, enter "1". If the amount is zero, enter "0". Let P1 = number of PT-100 battery packs produced at the Philippines plant P3 P2 = number of PT-200 battery packs produced at the Philippines plant number of PT-300 battery packs produced at the Philippines plant M1 = number of PT-100 battery packs produced at the Mexico plant M2 = number of PT-200 battery packs produced at the Mexico plant M3 = number of PT-300 battery packs produced at the Mexico plant

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To solve this problem lets break it down step by step We need to develop a linear program to determine how many units of each battery pack Photon Tech... 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

Cost Accounting

Authors: William K. Carter

14th edition

759338094, 978-0759338098

More Books

Students also viewed these Accounting questions

Question

What tasks will you choose to start?

Answered: 1 week ago