Production process consists of three primary activities

Assignment Help Operation Management

Reference no: EM131724139

Klein Industries manufactures three types of portable air compressors: small, medium, and large, which have unit profits of $20.50, $34.00, and $42.00, respectively. The projected monthly sales are:

Small Medium Large

Minimum 14,000 6,200 2,600

Maximum 21,000 12,500 4,200

The production process consists of three primary activities: bending and forming, welding, and painting. The amount of time in minutes needed to process each product in each department is shown below:

Small Medium Large Available Time

Bending/forming 0.4 0.7 0.8 23,400

Welding 0.6 1.0 1.2 23,400

Painting 1.4 2.6 3.1 46,800

How many of each type of air compressor should the company produce to maximize profit?

a. Formulate and solve a linear optimization model using the auxiliary variable cells method and write a short memo to the production manager explaining the sensitivity information.

b. Solve the model without the auxiliary variables and explain the relationship between the reduced costs and the shadow prices found in part a.

Solution Tip: You must use Solver tool in Excel. Set your constraints right, and fill in the solver dialogue box properly.

Reference no: EM131724139

Questions Cloud

Market size and growth of the spa industry : This is all based on the spa industry. What is the market size and growth of the Spa Industry?

Question asked by a person who drinks the much coffee : Suppose a newspaper article states that drinking three or more cups of coffee per day doubles the risk of gall bladder cancer.

Step in workforce planning : Which of the following is not a step in workforce planning?

Discuss perform end-to-end stream integrity : Why is it necessary to perform end-to-end stream integrity in addition to TLS between routers

Production process consists of three primary activities : The production process consists of three primary activities: bending and forming, welding, and painting.

Discuss bob proposes to batch multiple rsa decryptions : determine whether the scheme protects Bob's server against timing attacks, and explain your reasoning

What is the pattern of the relationship : Characterize the relationship between annual salary and age. What is the pattern of the relationship? How strong is the association?

Explain why and how your prediction would occur : How work relationships and Employment at Will may likely change in the next 10-20 years. Explain why and how your prediction would occur.

Job analysis technique that uses worker oriented job element : The job analysis technique that uses worker oriented job elements is the ________.

User Account

All Pages