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 -

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 Production Quantity
PT-100202,000
PT-200101,000
PT-300149,000
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.
Product Philippines Mexico
PT-100 $0.95 $0.98
PT-200 $0.98 $1.06
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 $0.18 per unit, and the cost of shipping from the Mexico plant is $0.10 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 (in dollars) associated with the new contract. (Assume P1= number of PT-100 battery packs produced at the Philippines plant, P2= number of PT-200 battery packs produced at the Philippines plant, P3= 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.)
Min
Correct: Your answer is correct.
s.t.
PT-100 Production
Correct: Your answer is correct.
PT-200 Production
Correct: Your answer is correct.
PT-300 Production
Correct: Your answer is correct.
Combined PT-100 and PT-200 Production Mexico Plant
Correct: Your answer is correct.
Combined PT-100 and PT-200 Production Philippines Plant
Correct: Your answer is correct.
PT-300 Production Mexico Plant
Correct: Your answer is correct.
PT-300 Production Philippines Plant
Correct: Your answer is correct.
M1, M2, M3, P1, P2, P3>=0
(b)
Solve the linear program developed in part (a) to determine the optimal production plan.
(M1, M2, M3, P1, P2, P3)=
What is total cost of the production plan (in dollars).(Round your answer to the nearest dollar.)
$
(c)
Use sensitivity analysis to determine how much the production and/or shipping cost per unit (in dollars per unit) would have to change to produce additional units of the PT-100 in the Philippines plant.
It would have to decrease by more than $
per unit.
(d)
Use sensitivity analysis to determine how much the production and/or shipping cost per unit (in dollars per unit) would have to change to produce additional units of the PT-200 in the Mexico plant.
It would have to decrease by more than $
per unit.

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

Strategic Project Management Made Simple

Authors: Terry Schmidt

1st Edition

0470411589, 978-0470411582

More Books

Students also viewed these General Management questions