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SEAN-CO company produces chairs using four main components: Y, Z, M, and F. Estimates show that At least 5000 dolls will be sold next month.

SEAN-CO company produces chairs using four main components: Y, Z, M, and F. Estimates show that At least 5000 dolls will be sold next month. Company buys the Z component from an outside supplier; but the F,M and Y component may either be produced by the company or purchased from an outside supplier. Manufacturing and purchase costs per unit are shown in the table below.

Component

PURCHASE COST

PRODUCING COST

F

9.50

8.50

M

16.00

9.00

Y

48.00

32.00

The time (IN MINUTES PER UNIT) required to process each component in each department and the available monthly capacity (IN HOURS) for the three departments are given.


Department

Component

P

M

S

F

0.8

-

1.7

M

1.3

1.7

2.6

Y

3.5

2.2

3.1

Capacity (hours)

450

520

780

The management wants at least 25% of each component to be manufactured by Dear-co.

1-) Use OPL to solve your model.

2-) ANSWER THR FOLLOWING QUESTIONS:

How many of each component should be manufactured and how many should be purchased?

What is the total cost of the manufacturing and purchasing plan?

How many hours of production time are used in each department?

2-) Show the linear programming model clearly. And explain detailly.

3-) Answer the following questions. Explain in detail. (Suppose that your computers are down after solving Question 2 so that you cannot solve a new problem from scratch L )

a)How much should be willing to pay for an additional hour of time in the S department?

b)Another manufacturer has offered to sell slates to SEAN-CO for $42 each. Could SEAN-CO improve its position by pursuing this opportunity? Why or why not?

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