Question: GMC has another new client for you to support. AutoTracker is an automotive component supplier that wants to know the optimal schedule to fill various
GMC has another new client for you to support. AutoTracker is an automotive component supplier that wants to know the optimal schedule to fill various orders.
AutoTracker manufactures truck, car and SUV frames at three plants. Here are the production rates per hour for each plant. These rates cant easily change. Due to plant arrangements, all frame types are necessarily produced simultaneously whenever a plant operates. So for the Chicago Plant, each one hour of production will yield 5 truck frames, 10 car frames, and 6 SUV frames.
Frames per hour for the following plants:
Chicago Plant:
Truck (5) Car (10) SUV (6)
Detroit Plant:
Truck (8) Car (8) SUV (8)
Pittsburgh Plant:
Truck (9) Car (7) SUV (5)
Additionally, the expected profit per frame is as follows:
Truck Car SUV
$3200 $2200 $1900
Please provide a full Quantitative Analysis Report with solutions, recommendations, and explanations regarding the following question:
- What are the minimum hours each plant should operate in order to most efficiently produce at least 2,600 truck frames and 2,800 car frames and 2,500 SUV frames?
- How many of each type of frame will be produced by each specific plant?
What is each plant's expected profit?
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