A company owns two small factories, A and B. which make the same product. A management...

 

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A company owns two small factories, A and B. which make the same product. A management decision has to be taken to find the number of hours for which each factory should be operated next week Factory A can operate for a maximum of 75 hours per week. producing 45 kilograms of product an hour Factory B can operate for a maximum of 50 hours per week. producing 30 kilograms an hour. To meet customer demand, at least 2,700 kilograms must be produced next week. The hourly cost of running Factory A is $2.000 an hour and for Factory B it is $1.000 an hour. Because of State grant regulations, the company must operate Factory A for at least as many hours as Factory B. The company's aim is to minimize running costs. You are required to: a) Write down the objective function and the constraints. b) Draw a graph of the problem. shading the feasible region. 16 marks] 18 marks] c) Identify the redundant constraints and the binding constraints in the above problem, and hence discuss how the binding constraint affects our objective function d) Conduct a sensitivity analysis on the above problem. e) Recommend a production policy with reasons and comments. 16 marks] 16 marks] 14 marks] A company owns two small factories, A and B. which make the same product. A management decision has to be taken to find the number of hours for which each factory should be operated next week Factory A can operate for a maximum of 75 hours per week. producing 45 kilograms of product an hour Factory B can operate for a maximum of 50 hours per week. producing 30 kilograms an hour. To meet customer demand, at least 2,700 kilograms must be produced next week. The hourly cost of running Factory A is $2.000 an hour and for Factory B it is $1.000 an hour. Because of State grant regulations, the company must operate Factory A for at least as many hours as Factory B. The company's aim is to minimize running costs. You are required to: a) Write down the objective function and the constraints. b) Draw a graph of the problem. shading the feasible region. 16 marks] 18 marks] c) Identify the redundant constraints and the binding constraints in the above problem, and hence discuss how the binding constraint affects our objective function d) Conduct a sensitivity analysis on the above problem. e) Recommend a production policy with reasons and comments. 16 marks] 16 marks] 14 marks]

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a Objective function and constraints Let x be the number of hours Factory A operates and y be the nu... View the full answer