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BA 211 Exercise 2: Machine Component Shaper Grinder

The document contains three multi-part exercises involving linear programming problems. The first exercise involves determining optimal production quantities for three components produced on two machines. The second exercise involves minimizing the total cost of assigning hours to three graphic designers with different hourly rates to complete a project. The third exercise involves determining the optimal allocation of production of two TV models across two production lines with different costs and capacities to minimize total production cost.

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Eden Mae DeGuzman
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194 views2 pages

BA 211 Exercise 2: Machine Component Shaper Grinder

The document contains three multi-part exercises involving linear programming problems. The first exercise involves determining optimal production quantities for three components produced on two machines. The second exercise involves minimizing the total cost of assigning hours to three graphic designers with different hourly rates to complete a project. The third exercise involves determining the optimal allocation of production of two TV models across two production lines with different costs and capacities to minimize total production cost.

Uploaded by

Eden Mae DeGuzman
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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BA 211

EXERCISE 2

Use Solver to find the optimal solutions.

1. Vollmer Manufacturing makes three components for sale to refrigeration companies. The
components are processed on two machines: a shaper and a grinder. The times (in minutes)
required on each machine are as follows:
Machine
Component Shaper Grinder
1 6 4
2 4 5
3 4 2

The shaper is available for 120 hours, and the grinder is available for 110 hours. No more than
200 units of component 3 can be sold, but up to 1000 units of each of the other components can
be sold. In fact, the company already has orders for 600 units of component 1 that must be
satisfied. The profit contributions for components 1, 2, and 3 are $8, $6, and $9, respectively.

a. Formulate and solve for the recommended production quantities.


b. What are the objective coefficient ranges for the three components? Interpret these ranges for
company management.
c. What are the right-hand-side ranges? Interpret these ranges for company management.
d. If more time could be made available on the grinder, how much would it be worth?
e. If more units of component 3 can be sold by reducing the sales price by $4, should the
company reduce the price?

2. Industrial Designs has been awarded a contract to design a label for a new wine produced by
Lake View Winery. The company estimates that 150 hours will be required to complete the
project. The firm’s three graphics designers available for assignment to this project are Lisa, a
senior designer and team leader; David, a senior designer; and Sarah, a junior designer. Because
Lisa has worked on several projects for Lake View Winery, management specified that Lisa
must be assigned at least 40% of the total number of hours assigned to the two senior designers.
To provide label-designing experience for Sarah, Sarah must be assigned at least 15% of the total
project time. However, the number of hours assigned to Sarah must not exceed 25% of the total
number of hours assigned to the two senior designers. Due to other project commitments, Lisa
has a maximum of 50 hours available to work on this project. Hourly wage rates are $30 for Lisa,
$25 for David, and $18 for Sarah.

a. Formulate a linear program that can be used to determine the number of hours each graphic
designer should be assigned to the project in order to minimize total cost.
b. How many hours should each graphic designer be assigned to the project? What is the total
cost?
c. Suppose Lisa could be assigned more than 50 hours. What effect would this have on the
optimal solution? Explain.
d. If Sarah were not required to work a minimum number of hours on this project, would
the optimal solution change? Explain.

3. Davison Electronics manufactures two LCD television monitors, identified as model A and
model B. Each model has its lowest possible production cost when produced on Davison’s new
production line. However, the new production line does not have the capacity to handle the total
production of both models. As a result, at least some of the production must be routed to a
higher-cost, old production line. The following table shows the minimum production
requirements for next month, the production line capacities in units per month, and the
production cost per unit for each production line:
Minimum
Production Cost per Unit Production
Model New Line Old Line Requirements
A $30 $50 50,000
B $25 $40 70,000
Production Line Capacity 80,000 60,000

a. Formulate the linear programming model for this problem using the following constraints:
Constraint 1: Minimum production for model A
Constraint 2: Minimum production for model B
Constraint 3: Capacity of the new production line
Constraint 4: Capacity of the old production line
b. What is the optimal solution, and what is the total production cost associated with this
solution?
c. Which constraints are binding? Explain.
d. Would an increase in capacity for the new production line be desirable? Explain.
e. Would you recommend increasing the capacity of the old production line? Explain.
f. The production cost for model A on the old production line is $50 per unit. How much would
this cost have to change to make it worthwhile to produce model A on the old production line?
Explain.
g. Suppose that the minimum production requirement for model B is reduced from 70,000 units
to 60,000 units. What effect would this change have on the total production cost? Explain.

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