5.10. The Wheeler Dealer Company produces two types of automobile phones for customers from the OPEC...

  

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5.10. The Wheeler Dealer Company produces two types of automobile phones for customers from the OPEC nations. The Midas Touch phone is 14-carat gold; the less flamboyant Silver Sheik is silver and jewel-encrusted. Orders for the phones are far outrunning production capabilities and the main concern of the firm is the optimal production policy. The Midas Touch requires 2 hours each in production and 1 hour of testing; each of the Silver Sheiks requires 1.5 hours in production and 1 hour of test. A total of 100 worker-hours of production time and 120 worker-hours of testing time is available each week. Profit per phone is $2,000 for each Midas Touch and $1,700 each for the Silver Sheik. (a) Let us first assume that the firm wishes to minimize the total number of units produced (so as to reduce handling problems, etc.) while achieving a weekly profit of at least $150,000. Graph and solve this problem as a single- objective model and discuss the results. (b) Now assume that we seek to maximize weekly profit and disregard the num- ber of phones produced. Graph this problem and discuss the results. (c) Discuss the amount of time available for test and production. Could either amount be reduced (and by how much) without affecting the profit found in part (b)? 5.10. The Wheeler Dealer Company produces two types of automobile phones for customers from the OPEC nations. The Midas Touch phone is 14-carat gold; the less flamboyant Silver Sheik is silver and jewel-encrusted. Orders for the phones are far outrunning production capabilities and the main concern of the firm is the optimal production policy. The Midas Touch requires 2 hours each in production and 1 hour of testing; each of the Silver Sheiks requires 1.5 hours in production and 1 hour of test. A total of 100 worker-hours of production time and 120 worker-hours of testing time is available each week. Profit per phone is $2,000 for each Midas Touch and $1,700 each for the Silver Sheik. (a) Let us first assume that the firm wishes to minimize the total number of units produced (so as to reduce handling problems, etc.) while achieving a weekly profit of at least $150,000. Graph and solve this problem as a single- objective model and discuss the results. (b) Now assume that we seek to maximize weekly profit and disregard the num- ber of phones produced. Graph this problem and discuss the results. (c) Discuss the amount of time available for test and production. Could either amount be reduced (and by how much) without affecting the profit found in part (b)?

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Let x1 and x2 denote number of Midas touch and Silver sheik phones taht are ... View the full answer