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Valu-Com Electronics manufactures five different models of telecommunications interface cards for PCs and laptops. As summarized in the following table, tach of these devices requires

Valu-Com Electronics manufactures five different models of telecommunications interface cards for PCs and laptops. As summarized in the following table, tach of these devices requires differing amounts of printed circuit board, resistors, memory chips, and assembly.

Per Unit Requirements

HyperLink

FastLink

SpeedLink

MicroLink

EtherLink

Printed Circuit Boards (sq in)

20

15

10

8

5

Resistors

28

24

18

12

16

Memory Chips

8

8

4

4

6

Assembly Labor (hrs)

.75

.6

.5

.65

1

The Unit Wholesale Price and Manufacturing Cost for each model are as follows

Per Unit Revenues and Cost

HyperLink

FastLink

SpeedLink

MicroLInk

EtherLink

WholesalePrice

$189

$149

$129

$169

$139

Manufacturing Cost

$136

$101

$96

$137

$101

In its next production period, Valu-Com has 90,000 square inches of PC board, 100,000 resistors, 30,000 memory chips, and 5,000 hours of assembly time available. The company can sell all the product it cna manufacture, but the marketing department wants to be sure the company produces at least 500 units of each product and at least twice as many FasLink cards as HyperLink cards while maximizing profit.

a. Formulate an LP model for this problem.

b. What is the Optimal Solution

c. Could Valu-Com make more money if it schedules assembly workers to work overtime?

 

 

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