Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

Problem A-3 (Algo) A manufacturing firm has discontinued production of a certain unprofitable product line. Considerable excess production capacity was created as a result Management

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Problem A-3 (Algo) A manufacturing firm has discontinued production of a certain unprofitable product line. Considerable excess production capacity was created as a result Management is considering devoting this excess capacity to one or more of three products. X1 X2 and X3 Machine hours required per unit are PRODUCT MACHTHE TYPE Milling machine 5 5 5 6 Brinder The available time in machine hours per week.is CHE HOURS PER 705 352 nchines Eathes SiEnders The salespeople estimate they can sell all the units of X and X2 that can be made. But the sales potential of X3 is 180 units per week maximum Unit profits for the three products are UNIT PROFITS $40 25 X1 23 .. Set up the equations that can be solved to maximize the profit per week (Leave no cells blank-be certain to enter "o" wherever required) X2- Maximize 2 st X1 + X2 + X2 + Milling Lathes Grinders Sales X1 + X1 + X1 + X2 X2 X35 X35 X35 X3 X1 X2 X32 D b. Solve these equations using the Excel Solver. (Leave no cells blank - be certain to enter "0" wherever required. Round you answers to the nearest whole number.) Decision for X1 Decision for X2 Decision for X3 Total profit D Milling Lathes Grinders Sales c. How much of each constraint or resource is unused? (Leave no cells blank.be certain to enter "0" wherever required. Round your answers to the nearest whole number) Hours Slack Variables ST S2 53 54 Help d-1. Would the machines work at capacity? Milling machines Lathes Grinders d-2. Will X3 be at maximum sales capacity? . o Yes e. Suppose that an additional 100 hours per week can be obtained from the Grinder by working overtime The incremental cost od be $1.50 per hour What would be the allowable increase from the excel sentity report in overtime when compared to as tonal hours that can be obtained? (Round "shadow price" to 2 decimal places and the rest to the nearest whole number the additional hours that can be The allowable increase from the Excel sensitivity report in overtime is

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

Endangered Economies How The Neglect Of Nature Threatens Our Prosperity

Authors: Geoffrey Heal

1st Edition

0231180845, 9780231180849

More Books

Students explore these related Accounting questions