T-Pod Digital Media Players (DMP) Corp. is an Arlington, VA based electronics manufacturer,

specializing in their patented technology media players and phones. Started in 2015, the company

is still in its growth phase. The company has four different models of phones it sells to consumers:

The Active and iPlus models are equipped with the company's patented Internet browsing software

and have special "touch-screen" displays specifically designed for that purpose. The Classic and

Slim models have regular displays. All models use the same central processing chip.

T-Pod out-sources its manufacturing and relies on partners located in Taiwan for the supply of the

displays, assembly and test of the phones. Each model's assembly time and test time requirements

are shown in Table 1 below, together with the amount of time available for assembly and testing

in the next month (which are already paid for). Unfortunately, because of a supply chain disruption

in Taiwan, the market is short in displays and chips. T-Pod's supplier is working with tight

resources, and indicates that not more than 12,000 processing chips and not more than 7,000 touchscreen

displays could be supplied in the next month. T-Pod has already paid for these displays so

they are available to use up to these numbers.

(a) Assume that T-Pod is interested in maximizing the contribution from the phones for the

next month, and that it can sell all the phones of any model that can be produced. How

many of each model should T-Pod order to be produced? Formulate this as an optimization

model, set it up in Excel, and use Solver to find the optimal solution. Turn in a printout of

your model showing the optimal solution as Exhibit B. Be sure your model is clearly

presented and understandable. (Note: For this assignment, you do not have to assume that

each produced model has to be in integer quantity.)

Table 1 - Requirements and Time Available

Classic Model Slim Model Active Model iPlus Model Total Available

Assembly Time (hours) 0.6 0.8 1.0 1.6 14,000

Test Time (hours) 0.2 0.2 0.5 0.8 4,000

Profit contribution ($ per unit) $30 $40 $65 $100