Constrained Optimization: One Internal Binding Constraint Wetzel Company produces two types of machine parts: Part A...

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Constrained Optimization: One Internal Binding Constraint Wetzel Company produces two types of machine parts: Part A and Part B, with unit contribution margins of $300 and $600, respectively. Assume initially that Wetzel can sell all that is produced either component. Part A requires two hours of assembly, and B requires five hours of assembly. The firm has 300 assembly hours per week. Required: 1. Express the objective of maximizing the total contribution margin subject to the assembly-hour constraint. Objective function: Max Z- S300 A+ $600 B Subject to: A+ 2. Identify the optimal amount that should be produced of each machine part. If none of the components should be produced, enter "0" for your answer. Component A units Component B units Identify the total contribution margin associated with this mix. 3. What if market conditions are such that Wetzel can sell at most 75 units of Part A and 60 units of Part B? Express the objective function with its associated constraints for this case. Objective function: Max Z = 5300 A + $600 8 Assembly-hour constraint Bs Demand constraint for Part A AS Dermand constraint for Part B Tdentify the optimal mix and its associated total contribution margin. Component A $ units Identify the optimal mix and its associated total contribution margin. Component A $ units Component B $ units Total contribution $ Constrained Optimization: One Internal Binding Constraint Wetzel Company produces two types of machine parts: Part A and Part B, with unit contribution margins of $300 and $600, respectively. Assume initially that Wetzel can sell all that is produced either component. Part A requires two hours of assembly, and B requires five hours of assembly. The firm has 300 assembly hours per week. Required: 1. Express the objective of maximizing the total contribution margin subject to the assembly-hour constraint. Objective function: Max Z- S300 A+ $600 B Subject to: A+ 2. Identify the optimal amount that should be produced of each machine part. If none of the components should be produced, enter "0" for your answer. Component A units Component B units Identify the total contribution margin associated with this mix. 3. What if market conditions are such that Wetzel can sell at most 75 units of Part A and 60 units of Part B? Express the objective function with its associated constraints for this case. Objective function: Max Z = 5300 A + $600 8 Assembly-hour constraint Bs Demand constraint for Part A AS Dermand constraint for Part B Tdentify the optimal mix and its associated total contribution margin. Component A $ units Identify the optimal mix and its associated total contribution margin. Component A $ units Component B $ units Total contribution $

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Solution Decision Variables A No ... View the full answer