1. objective function

2. sensitivity report

3. constriants

4. optimal solution

5. total cost manufacturing

6. total cost assembly time

7. total cost or testing time

8. what is the most the company would be willing to pay for 10 more hours in testing time

9. formulate a linear program that helps a ACME decide how many units of widgets and gizmos they should manufacture and purchase if they had to satisfy demand of 8000 widgets and 7000 gizmos

Acme Industries Acme Industries distributes two components, widgets and gizmos for the cell phone industry. Acme can manufacture or purchase these components at the costs listed in the table below, Clearly, it is always cheaper for Acme to manufacture the components, but Acme may not have the capacity to satisfy their demand. If they decide to manufacture, each widget requires 2 minutes of assembly time, and 3 minutes of testing time. Each gizmo requires 2.5 minutes of assembly and 4 minutes of testing. Purchased items are not subject to assembly and testing constraints. Acme estimates that they have 200 hours of assembly time and 250 hours of testing time available. Formulate a linear program that helps Acme decide how many units of widgets and gizmos they should manufacture and purchase if they had to satisfy demand of 8000 widgets and 7000 gizmos. Their objective is to minimize their total cost. Source Manufacture Purchase Widget $ 4.50 $ 5.25 Gizmo $6.00 $ 7.00