Use Excel's Solver to determine which of the below 3 strategies yield the minimal total cost. (see
Question:
Use Excel's Solver to determine which of the below 3 strategies yield the minimal total cost. (see the attached image)
Hints:
Part 1: use level production of 60 tankloads every month and supplement with overtime as needed with a maximum of 10 tankloads every month. Subcontracting does not play a role here and can be either removed from the spreadsheet computations or a constraint can be added to set subcontracting production at zero if subcontracting has been included as a decision variable. Decision variables: Regular production and overtime. Constraints: restrict regular production to equate to 60 tankloads per month, and overtime to not exceed 10 truckloads per month. Also, add another constraint to ensure that the ending inventory is greater than or equal to zero.
Part 2: use level production of 60 tankloads every month and supplement with overtime (with a maximum of 10 tankloads every month) and subcontracting. There is no limit or a constraint on how many units to be produced in subcontracting. Decision variables: regular production, overtime, and subcontracting. Constraints: equate regular production to equate to 60 tankloads, overtime not to exceed 10 tankloads, and there is no constraint pertaining to subcontracting. Also, add another constraint to ensure that the ending inventory is greater than or equal to zero.
Part 3: identical to part 1, however, the maximum tankloads in overtime is increased from 10 to 15.
Can you show me how to do it on Excel or upload the excel spreadsheet itself? Of course I will not submit the spreadsheet. I just have a hard time with the solver function.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill