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The Ace Manufacturing Company produces two lines of its product, the super and the regular. Resource requirements for production are given in the table. There are 1,600 hours of assembly worker hours available per week, 700 hours of paint time, and 1200 hours of inspection time. Regular customers will demand at least 150 units of the regular line and at least 90 of the super line. Profit Assembly Paint Inspection Product Line Contribution time (hr.) time (hr.) time (hr.) Regular 50 1.2 .8 1.5 Super 75 1.6 .5 .7 a) Formulate an LP model which the Ace Company could use to determine the optimal product mix on a weekly basis. Use two decision variables (units of regular and units of super). Suggest any feasible solution and explain what "feasible solution" means. b) Find the optimal solution by using the graphical solution technique. What is the value of the objective function? What are the values of all variables? c) By how many units can the demand for the super product increase before the optimal intersection point changes? Explain. For the regular product? d) How much would it be worth to the Ace Company if it could obtain an additional hour of paint time? Of assembly time? Of inspection time? Explain fully. Show all calculations. e) Find the upper and lower bounds for assembly time by identifying the corner points on either end of the line and substituting these points into the assembly equation. What do these bounds mean? Explain. f) Solve this problem with LINDO or POM and verify that your answers are correct.
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