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The Westfall Company has a contract to produce 10,000 garden hoses for a large discount chain. Westfall has four different machines that can produce this
- The Westfall Company has a contract to produce 10,000 garden hoses for a large discount chain. Westfall has four different machines that can produce this kind of hose. Because these machines are from different manufacturers and use differing technologies, their specifications are not the same.
Machine | Fixed Cost to Set Up Production Run | Variable Cost Per Hose | Capacity |
1 | 750 | 1.25 | 6000 |
2 | 500 | 1.50 | 7500 |
3 | 1000 | 1.00 | 4000 |
4 | 300 | 2.00 | 5000 |
This problem requires two different kinds of decision variables. Develop the model such that the company wants to minimize total cost, meet the demand, and ensure that if machine 4 is used, machine 1 cannot be. Implement a spreadsheet model and use Excel Solver to obtain a solution to the problem. Submit your Excel Solver file.
Hint: Some combination of the machines will be used to achieve the objective. All machines may or may not be used.
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