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Deluxe Standard Quantity Produced: Type Allocation Model

The document describes an optimization model for Veerman Furniture Company to determine the optimal product mix of chairs, desks, and tables to maximize quarterly profit. The objectives section calculates total profit and the constraints sections consider fabrication capacity, assembly capacity, shipping capacity, and market demand for each product. Running the solver will find the optimal quantities of each product to produce.

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Nguyen Dinh Quang Minh
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138 views5 pages

Deluxe Standard Quantity Produced: Type Allocation Model

The document describes an optimization model for Veerman Furniture Company to determine the optimal product mix of chairs, desks, and tables to maximize quarterly profit. The objectives section calculates total profit and the constraints sections consider fabrication capacity, assembly capacity, shipping capacity, and market demand for each product. Running the solver will find the optimal quantities of each product to produce.

Uploaded by

Nguyen Dinh Quang Minh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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A B C D E F G H I

1 OPTIMIZING MODEL - ACME COMPANY


2 DECIDING PRODUCTION QUANTITY
3 TYPE ALLOCATION MODEL
4
5 DECISIONS Deluxe Standard
6 Quantity produced
7
8 OBJECTIVES Total
9 Contribution margin 800 200
10
11 CONSTRAINTS Results Conditions Note
12 Deluxe quantity 1 0 <=
13 Standard quantity 0 1 <=
14 Total quantity 1 1 <=
15 Manufacturing time 2 1 <=
16
OPTIMIZING MODEL - VEERMAN FURNITURE COMPANY
DECIDING PRODUCTION QUANTITY
TYPE ALLOCATION MODEL

DECISION VARIABLES
Chair Desk Table
Product mix

OBJECTIVES Total
Profit 15 24 18

CONSTRAINTS Results Conditions


Fabrication
potential on hours
Demand Producti

Assembly
Shipping
Chair market
Desk market
Table market
CASE:
Veerman Furniture Company makes three kinds of office furniture: chairs, desks, and tables.
product requires some labor in the parts fabrication department, the assembly department, an
shipping department. The furniture is sold through a regional distributor, who has estimated t
maximum potential sales for each product in the coming quarter. Finally, the accounting
department has provided some data showing the profit contributions on each product. The de
problem is to determine the product mix—that is, to maximize Veerman’s profit for the quart
choosing production quantities for the chairs, desks, and tables.

Check

REQUIREMENT

(1) Calculate total profit in the OBJECTIVES section


(2) Complete the CONSTRAINTS sections
(3) Run Solver to find optimal product mix.
: chairs, desks, and tables. Each
e assembly department, and the
ibutor, who has estimated the
inally, the accounting
ns on each product. The decision
erman’s profit for the quarter by
A B C D E F G H
1 OPTIMIZING MODEL - DAHBY OUTFITTERS COMPANY
2 TRAIL MIX TASK
3 TYPE COVERING MODEL
4
5 DECISIONS Seeds Raisins Flakes Pecans Walnuts
6 Amount
7
8 OJECTIVES
9
10
11 CONSTRAINTS
12

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