Problem:

Toyota company Inc. produces sedan and compact vehicle. The sales department has predicted a demand of at least 200 sedan and 100 compact each month. Because of limitations on production capacity, no more than 500 sedan and 200 compact can be made monthly. To satisfy a shipping contract, a total of at least 600 products (including both sedan and compact) much be shipped each month.

If each sedan sold results in a SR 10000 profit, and each compact produces a SR 20000 profit, how many of each type should be made monthly to maximize net profits?

Description:

The purpose of this project is to let the students understand basic concepts of modeling for DSS. Students will solve simple real world decision making problems. The students are expected to formulate a linear programming model and then solve the model using MS Excel Solver Add-in. The steps and marks for each step are given below:

Task	Marks
Identify Decision Variables	10
Formulate Objective Function with coefficients	10
Identify Constraints	30
Solve the Model in MS Excel Using Solver	30
Report and Result	20
Total	100