SCM 515 Homework Assignment 5 1. A manufacturer can sell product 1 at a profit of $20 per unit and product 2 at a profit of $40 per unit. Three units of raw material are needed to manufacture one unit of product 1, and six units of raw material are needed to manufacture one unit of product 2. A total of 15,000 units of raw material are available. If any product 1 is produced, a setup cost of 20,000 is incurred; if any of product 2 is produced, a setup cost of $35,000 is incurred. a. Determine how to maximize the manufacturer's profit. b. If either of the products is not produced in the optimal solution, use SolverTable to see how much this product's unit profit must be before it will be produced, and then use SolverTable again to see how much this product's fixed cost must be decreased before it will be produced. 91. A leading hardware company produces three types of computers: Pear computers, Apricot computers, and Orange computers. The relevant data are given in the file P14_91.xlsx. The equipment cost is a fixed cost; it is incurred if any of this type of computer is produced. A total of 30,000 chips and 12,000 hours of labor are available. The company wants to produce at least two types of computers. 1. 2. Determine how the company can maximize its profit. For any computer type not in the optimal product mix, use SolverTable to find how much larger its unit margin would have to be before it would enter the optimal product mix. 92. A food company produces tomato sauce at five different plants. The tomato sauce is then shipped to one of three warehouses, where it is stored until it is shipped to one of the company's four customers. All of the inputs for the problem are given in the file P14_92.xlsx, as follows: 1. 2. The plant capacities (in tons) The cost per ton of producing tomato sauce at each plant and shipping it to each warehouse 3. The cost of shipping a ton of sauce from each warehouse to each customer 4. The customer requirements (in tons) of sauce 5. The fixed annual cost of operating each plant and warehouse. The company must decide which plants and warehouses to open, and which routes from plants to warehouses and from warehouses to customers to use. All customer demand must be met. A given customer's demand can be met from more than one warehouse, and a given plant can ship to more than one warehouse. 1. 2. Determine the minimum-cost method for meeting customer demands. Use SolverTable to see how a change in the capacity of plant 1 affects the total cost. 3. Use SolverTable to see how a change in the customer 2 demand affects the total cost