A company produces 3 types of hand-held compasses: types High Precision, Medium Precision and Low Precision...

 

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A company produces 3 types of hand-held compasses: types High Precision, Medium Precision and Low Precision for field work. The compasses are produced at a small plant with the following resource requirements (Table 3) Table 3 Compass Type High Precision Medium Precision Low Precision Cost (unit) Labour (hr/unit) 12 3.6 Lens (kg/unit) 0.192 0.144 0.96 Maximum daily demands for High Precision, Medium Precision and Low Precision compasses are 360, 240 and 180 respectively. The compasses are sold at $24, $18 and $14 per unit of High Precision, Medium Precision and Low Precision types respectively, Daily labour hours are limited to 720 hours and 48 kg of lens is available daily. The in-process inventory space can only allow a combined maximum of 600 units of compasses and cannot take more. The company wants to determine the number of units of each type of compass to produce. Management of the company has set the following goals, in order of importance: 1. Avoid exceeding a daily budget of $2,400. H. Ensure that labour and lens are fully utilised and not wasted. ii. Limit the over expenditure of budget to $120. iv. Ensure that the in-process inventory space is fully filled with compasses Formulate a goal programming model of this problem. [15] A company produces 3 types of hand-held compasses: types High Precision, Medium Precision and Low Precision for field work. The compasses are produced at a small plant with the following resource requirements (Table 3) Table 3 Compass Type High Precision Medium Precision Low Precision Cost (unit) Labour (hr/unit) 12 3.6 Lens (kg/unit) 0.192 0.144 0.96 Maximum daily demands for High Precision, Medium Precision and Low Precision compasses are 360, 240 and 180 respectively. The compasses are sold at $24, $18 and $14 per unit of High Precision, Medium Precision and Low Precision types respectively, Daily labour hours are limited to 720 hours and 48 kg of lens is available daily. The in-process inventory space can only allow a combined maximum of 600 units of compasses and cannot take more. The company wants to determine the number of units of each type of compass to produce. Management of the company has set the following goals, in order of importance: 1. Avoid exceeding a daily budget of $2,400. H. Ensure that labour and lens are fully utilised and not wasted. ii. Limit the over expenditure of budget to $120. iv. Ensure that the in-process inventory space is fully filled with compasses Formulate a goal programming model of this problem. [15]

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