Question: Although the entire question is posted, parts d & e are the ones I require in this post. Please include thoughts, rationale and steps as
Although the entire question is posted, parts d & e are the ones I require in this post. Please include thoughts, rationale and steps as I am learning.
38. Applied Technology Inc. (ATI) produces bicycle frames using two fiberglass materials that improve the strength to weight ratio of the frames. The cost of the standard-grade material is $7.50 per yard and the cost of the professional-grade material is $9.00 per yard. The standard- and professional-grade materials contain different amounts of fiberglass, carbon fiber, and Kevlar, as shown in the following table:
|
| Standard Grade | Professional Grade |
| Fiberglass | 84% | 58% |
| Carbon Fibre | 10% | 30% |
| Kevlar | 6% | 12% |
ATI signed a contract with a bicycle manufacturer to produce a new frame with a carbon fiber content of at least 20% and a Kevlar content of not greater than 10%. To meet the required weight specification, a total of 30 yards of material must be used for each frame.
- Formulate a linear program to determine the number of yards of each grade of fiber-glass material that ATI should use in each frame in order to minimize total cost. Define the decision variables and indicate the individual purpose of each constraint.
- Use the graphical solution procedure to determine the feasible region. What are the coordinates of the extreme points?
- Compute the total cost at each extreme point. What is the Optimal solution?
- The distributor of the fiberglass material is currently overstocked with the professional-grade material. To reduce inventory, the distributor offered ATI the opportunity to purchase the professional-grade material for $8 per yard. Will the optimal solution change?
- Suppose that the distributor further lowers the price of the professional-grade to $7.40 per yard. Will the optimal solution change? What effect would an even lower price for the professional-grade material have on the optimal solution? Explain.
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