Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use a spreadsheet to create an LP model for the problem described below and solve it with Solver. The model must be linear and solved

Use a spreadsheet to create an LP model for the problem described below and solve it with Solver. The model must be linear and solved with the Simplex algorithm. Some points will be awarded for model design, technique, and efficiency.
Johns Manufacturing just received a large order for two of its main products: their customer needs 3,500 units of Product 1 and 2,500 units of Product 2. Due to limited production capacity, the company may have to purchase some finished product from a third-party supplier to fill the order. The table in the Excel file shows the costs to make the products and the costs to buy the products from the other supplier.
Note that the costs to make the products include both variable costs and fixed coststhe fixed cost must be paid if any amount of the product is made, but does not have to be paid if they choose to not make the product.
If the company buys any amount of either product from the third-party supplier, they must purchase at least 1,000 units of each product.
Three types of machines are needed to make the products. The table shows the machine hours required to make a unit of each product. In the relevant time period, each machine has a limited capacity of 3,000 hours.
Johns' objective is to determine the optimal amounts of each product to make and/or buy to fill the order.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Of Art Galleries

Authors: Magnus Resch

3rd Edition

0714877751, 978-0714877754

More Books

Students also viewed these General Management questions

Question

=+a) Compute the EV for each alternative product (decision).

Answered: 1 week ago