Klein Industries manufactures three types of portable air compressors: small, medium, and large, which have unit profits
Question:
Klein Industries manufactures three types of portable air compressors: small, medium, and large, which have unit profits of $ 20.50, $ 34.00, and $ 42.00, respectively. The projected monthly sales are as follows:
The production process consists of three primary activities: bending and forming, welding, and painting. The amount of time in minutes needed to process each product in each department is as follows:
How many of each type of air compressor should the company produce to maximize profit?
a. Formulate and solve a linear optimization model using the auxiliary variable cells method and write a short memo to the production manager explaining the sensitivity information.
b. Solve the model without the auxiliary variables and explain the relationship between the reduced costs and the shadow prices found in part a.
Step by Step Answer:
Business Analytics Methods Models and Decisions
ISBN: 978-0321997821
2nd edition
Authors: James R. Evans