ABC Manufacturing makes three components for sale to refrigeration companies. The components are processed on two machines:
Question:
ABC 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:
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.
Answer the following questions (a-i) using the output below please be brief. If there are two possible answers one will suffice. Where necessary arrange analysis must be shown. (Hint converts to minutes)
a) What is the optimal solution (in words?
b) An additional 4 hours of shaper time became available. Evaluate the effect? Explain
c) Two hours of Grinder time was lost. Evaluate the effect?
d) An additional 20 units of component 3 was requested. Evaluate the effect
e) The demand for component 2 decreased by 30 units. Evaluate the effect
f) Suppose that the profit contribution of component 1 increases to $9.00.
What is the new optimal solution?
g) Suppose that the profit contribution of component 3 decrease by $2.00. Would the optimal solution changed?
h) Is the problem degenerate? Explain!
i) Are there alternative optima in this problem? Explain
Quantitative Methods for Business
ISBN: 978-0324651751
11th Edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey cam