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up-.. .-_.-....-- 5. Anderson Electronics is considering the production of four potential products: VCRs, stereos, TVs. and DVD players. They have categorized all scarce resources
up-.. .-_.-....-- 5. Anderson Electronics is considering the production of four potential products: VCRs, stereos, TVs. and DVD players. They have categorized all scarce resources required to manufacture these items into 3 groups: electronic components. non-electronic components. and assembly time. The composition of these 4 products in terms of the 3 inputs along with the selling prices of these items is shown below: W \"5\"\"? - or week ._.-I- -m--m --:- -um- Electronic components can be purchased for $100 per unit: non-electronic components for $5.0 per unit; and assembly costs are $1030 per hour. Determine the following: a] Formulate the shore problem into proper LP format. Use Exce|*s solyer to generate the LP output and then answer the following questions: b] What is the optimal product mix and maximum prot? c} What is the impact on prot if Anderson purchased more non-electronic components? d] What would be the impact on prot if they could increase the supply of electronic components by 49D? e} What would be the impact on prot if they could increase the supply of electronic components by d? f} Refer back to part d) to the question of getting an increase of d additional electronic components. What would happen if the supplier of these also units wants $3 per unit {rather than the current cost of $? per unit)? g} Assume that they had an opportunity to get an additional 25G hours of assembly time. Howeyer, this extra time will cost the company time and a half. Should they take it? h] If a customer calls Anderson and requires l TVs, how will this impact their prot? i} How protable must VGRs become before Anderson considers producing them? } Interpret the range of optimality for the prot contribution for the DVD players. it] If DVD player's selling price changed to $106. would anything change? Product mix? Prot
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