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 battery

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:

image text in transcribedimage 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 Production Quantity PT-100 200,000 PT-200 100,000 PT-300 150,000 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 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 $0.12 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. Let P1 = number of PT-100 battery packs produced at the Philippines plant P2 = number of PT-200 battery packs produced at the Philippines plant Assignment PT-200 PT-300 Total Cost = $ 535000 (c) Use sensitivity analysis to determine how much the production and/or shipping cost per unit would have to change to produce additional units of the PT-100 in the Philippines plant. If required, round your answer to two decimal digits. At least $ 1.16 / unit. (d) Use sensitivity analysis to determine how much the production and/or shipping cost per unit would have to change to produce additional units of the PT-200 in the Mexico plant. If required, round your answer to two decimal digits. At least $ 0.05 / unit Hide Feedback Partially Correct Check My Work 0=Icon Key Problem 12-08 Algo (Sensitivity Analysis) Question 2 of 3 Save Submit Assignment for Grading 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-100 200,000 PT-200 100,000 PT-300 150,000 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 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 $0.12 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. Let P1 = number of PT-100 battery packs produced at the Philippines plant P2 = number of PT-200 battery packs produced at the Philippines plant Assignment PT-200 PT-300 Total Cost = $ 535000 (c) Use sensitivity analysis to determine how much the production and/or shipping cost per unit would have to change to produce additional units of the PT-100 in the Philippines plant. If required, round your answer to two decimal digits. At least $ 1.16 / unit. (d) Use sensitivity analysis to determine how much the production and/or shipping cost per unit would have to change to produce additional units of the PT-200 in the Mexico plant. If required, round your answer to two decimal digits. At least $ 0.05 / unit Hide Feedback Partially Correct Check My Work 0=Icon Key Problem 12-08 Algo (Sensitivity Analysis) Question 2 of 3 Save Submit Assignment for Grading

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_2

Step: 3

blur-text-image_3

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

Accounting A Comprehensive Guide For Beginners

Authors: Robert McCarthy

1st Edition

1638180474, 978-1638180470

More Books

Students also viewed these Accounting questions