a. Set up the equations that can be solved to maximize the profit per week.

Maximize Z = ___ X1 + ____ X2 + ____ X3

b. Solve these equations using the Excel Solver. (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to the nearest whole number.)

Decision for X1=

Decision for X2=

Decision for X3=

Total Profit=

Resources used:

Milling=

Lathes=

Grinders=

c. How much of each constraint or resource is unused?

S1=

S2=

S3=

d-1. Would the machines work at capacity?

Milling=

Lathes=

Grinding=

d-2. Will X3 be at maximum sales capacity? (yes or no)

e. Suppose that an additional 150 hours per week can be obtained from the lathes by working overtime. The incremental cost would be $5.00 per hour. What would be the allowable increase(from the excel sensitivity report) in overtime when compared to additional hours that can be obtained?

The allowable increase (from the excel sensitivity report) in overtime is=

The additional hours that can be obtained is=

A manufacturing firm has discontinued production of a certain unprofitable product line. Considerable excess production capacity was created as a result. Management is considering devoting this excess capacity to one or more of three products: X1, X2, and X3. Machine hours required per unit are MACHINE TYPE Milling machine Lathe Grinder PRODUCT X1 X2 X3 3 5 6 3 5 4 i 33 The available time in machine hours per week is MACHINE HOURS PER WEEK 860 Milling machines Lathes Grinders 600 210 The salespeople estimate they can sell all the units of X1 and X2 that can be made. But the sales potential of X3 is 80 units per week maximum. Unit profits for the three products are UNIT PROFITS $ 12 www S Milling + X3 | u | v + X3 | u Lathes Grinders Sales + X3 + | v | N X1, X2, X3