A company is manufacturing two products, A and B, at the production facilities in town X...

 

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A company is manufacturing two products, A and B, at the production facilities in town X and Y. Four customers have ordered the following amounts in the coming period: Customer 1 Customer 2 Customer 3 Customer 4 Factory X Factory Y The company has currently no products on stock. The products are distributed either directly from the facilities to the customers, or through the intermediate stocks K and L. Both facilities use one unit production time for each of the products and have a total capacity of 2700 time units as shown in the table to the left, while the capacities for the stocks K and L are shown in the table to the right. Time A Time B 1 A a) B X Y Capacity Space/unit Distribution costs per unit from the production facilities to stocks or customers are: K 4 55 200 65 150 X Y Product A 700 650 A B 50 60 500 600 K L K L Capacity 2700 2700 L 75 45 Product B 400 550 800 400 70 40 Similarly, the distribution costs from stocks to customers are: 1 110 85 100 80 1 150 160 140 150 2 130 115 2 190 170 120 110 180 160 3 95 140 Stock K 4000 m² 90 130 Product A 3 m² 3 160 210 150 200 4 120 75 Stock L 4500 m² 110 70 Product B 2 m² 190 140 Formulate the problem as an LP problem where the main objective is to minimize the costs. Define objective function, constraints, variables and parameters used. i) Find the optimal solution by using Solver in Excel. A company is manufacturing two products, A and B, at the production facilities in town X and Y. Four customers have ordered the following amounts in the coming period: Customer 1 Customer 2 Customer 3 Customer 4 Factory X Factory Y The company has currently no products on stock. The products are distributed either directly from the facilities to the customers, or through the intermediate stocks K and L. Both facilities use one unit production time for each of the products and have a total capacity of 2700 time units as shown in the table to the left, while the capacities for the stocks K and L are shown in the table to the right. Time A Time B 1 A a) B X Y Capacity Space/unit Distribution costs per unit from the production facilities to stocks or customers are: K 4 55 200 65 150 X Y Product A 700 650 A B 50 60 500 600 K L K L Capacity 2700 2700 L 75 45 Product B 400 550 800 400 70 40 Similarly, the distribution costs from stocks to customers are: 1 110 85 100 80 1 150 160 140 150 2 130 115 2 190 170 120 110 180 160 3 95 140 Stock K 4000 m² 90 130 Product A 3 m² 3 160 210 150 200 4 120 75 Stock L 4500 m² 110 70 Product B 2 m² 190 140 Formulate the problem as an LP problem where the main objective is to minimize the costs. Define objective function, constraints, variables and parameters used. i) Find the optimal solution by using Solver in Excel.

Answer rating: 100% (QA)

Solution Minimize cost Product A55 XK 75 XL 150 X1 190 X2 160 X3 200 X4 65 YK 45 YL160 Y1 170 Y... View the full answer