MTV Steel Company produces three sizes of tubes: A, B, and C, that sell, respectively, for $10,
Question:
MTV Steel Company produces three sizes of tubes: A, B, and C, that sell, respectively, for $10, $12, and $9 per foot. To manufacture each foot of tube A requires 0.5 minutes of processing time on a particular type of shaping machine. Each foot of tube B needs 0.45 minutes, and each foot of tube C needs 0.6 minutes. After production, each foot of tube, regardless of type, requires 1 ounce of welding material. The total cost is estimated to be $3, $4, and $4 per foot of tubes A, B, and C, respectively. For the coming week, MTV Steel has received exceptionally large orders totaling 2000 feet for tube A, 4000 feet for tube B, and 5000 feet for tube C. As only 40 hours of machine time are available this week and only 5500 ounces of welding material are in inventory, the Production Department will not be able to meet these demands, which require a total of 97 hours of machine time and 11,000 ounces of welding material. This high level of demand is not anticipated to continue. Rather than expanding the capacity of the production facilities, the management of MTV Steel is considering purchasing some of these tubes from suppliers in Japan at a cost of $6 per foot of tube A, $6 per foot of tube B, and $7 per foot of tube C. These various data are summarized in the following table. As Manager of the Production Department, you have been asked to make recommendations as to how much of each tube type to produce and how much to purchase from Japan so as to meet the demands and maximize the company’s profits.
a) Formulate an LP for this question.
b) Use excel solver to solve this LP. You need to write down the solution of the decision variables AND paste the screenshot of the excel spreadsheet to this file.
Vector Mechanics for Engineers Statics and Dynamics
ISBN: 978-0073212227
8th Edition
Authors: Ferdinand Beer, E. Russell Johnston, Jr., Elliot Eisenberg, William Clausen, David Mazurek, Phillip Cornwell