Schmidt Industries makes four different snake traps; the Harlan, the Gaylen, the Leah and the Matthew. The Harlan sells for $200 and has $40 in parts and $40 in labor; the Gaylen sells for $150 and requires $30 in parts and $30 in labor, the Leah sells for $100 and has $20 in parts and $20 in labor; and the Matthew sells for $75 but requires only $10 of parts and $10 of labor. Schmidt Industries has four machines (we'll call them A, B, C, and D for convenience) that are used in the production of each of these products. Each of these machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other. The processing requirements to make one unit of each product are shown in the table. process time/machine Mach A Mach B Mach D Model Harlan 15 5 10 10 Gaylen Leah 10 10 Matthew 5 10 Schmidt Industries has weekly fixed costs of $5000 and has a demand forecast of 80 Harlans, 60 Gaylens, 40 Leahs and 20 Matthews for the coming week. How many of each of the four models should Susan, the operations manager, schedule for production this month if she wants to maximize contribution margin? Use the LP printout below for some of the questions? Schmidt Industries X2 X3 X4 RHS Dual Maximize 120 Constraint 11 10 Constraint 2 15 Constraint 3 15 Constraint 4 6 Constraint 5 1 Constraint 6 Constraint 7 9955 10 10 0 X1 90 10 10 10 10 0 1 8424200. 60 10 Mach C 5155 10 46557 3000 10 0 0 CB 344 2400 2400 2400 2400 80 60 40 0 040 60 50 n Constraint 4 5 10 10 2400 Constraint 5 1 0 0 80 60 Constraint 6 0 1 0 60 50 Constraint 7 0 0 1 40 0 Constraint 8 0 0 0 80 60 33.33 20 XXXXXXX Variable Value Reduced Cost Original Val Lower Bound Upper Bound X1 80 0 120 60 X2 60 0 90 X3 33.33 X4 20 0 55 20 Constraint Dual Value Slack/Surplus Original Val Lower Bound Constraint 1 0 733 2400 166.67 Constraint 2 0 166.67 2400 2233.33 Constraint 3 0 1900 Constraint 4 0 866.66 2400 1533.33 Constraint 5 60 0 80 73 Constraint 6 50 0 60 50 Constraint 7 0 40 33.33 Constraint 8 35 0 20 0 How much is one additional minute of capacity at machine B worth? $2.33 $166.67 $33.33 nothing 10 0 0 001 6.67 C 80 60 33.33 20 XXXXXXX Variable Value Reduced Cost Original Val Lower Bound Upper Bound X1 80 0 120 60 X2 60 0 90 X3 33.33 X4 20 0 55 20 Constraint Dual Value Slack/Surplus Original Val Lower Bound Constraint 1 0 733 2400 166.67 Constraint 2 0 166.67 2400 2233.33 Constraint 3 0 1900 Constraint 4 0 866.66 2400 1533.33 Constraint 5 60 0 80 73 Constraint 6 50 0 60 50 Constraint 7 0 40 33.33 Constraint 8 35 0 20 0 How much is one additional minute of capacity at machine B worth? $2.33 $166.67 $33.33 nothing 10 0 0 001 6.67 C
