Question: Hello! Need some help with setting up this excel question and the formulas to use. Thanks so much! Donald Duck runs a Fiat automobile factory
Hello! Need some help with setting up this excel question and the formulas to use. Thanks so much!
Donald Duck runs a Fiat automobile factory in Europe. Donald's factory produces four different models: the sedan, the convertible, the wagon, and the SUV. He wants to use Excel to help him optimize his operations. Donald has asked you to use Excel to help him figure out the numbers of each model to produce in order to maximize the expected total factory profit. However, there are several constraints on the numbers of each model to be produced:
At least 1,000 units of each model must be produced to utilize parts inventory.
Due to contractual obligations to supply a rental car company with cars for its fleet, at least 3,000 units of the sedan, and
1,800 units of the SUVs must be produced.
The factory is not currently capable of producing more than 18,000 cars of all models combined in a year.
It is estimated that no more than 4,000 units of the wagon could be sold in a year, so therefore no more than 4,000 wagons should be produced.
No more than 4,100 units of the convertibles should be produced because that is the most convertible tops that the supplier can guarantee to deliver for the year.
Question: Formulate this as an optimization problem; make sure to define your decision variables, your objective function and your constraints
The following table includes the estimated cost and price per unit for each model: Model Unit Production Cost Retail Price Sedan $ 18,675.00 $ 25,900 Convertible $ 30,046.00 $ 39,995 $ 24,267.00 $ 34,695 Wagon SUV $ 25,463.00 $ 33,995 Model Sedan Convertible Wagon SUV Unit Production Cost (in $) YEARLY PRODUCTION/PROFIT DATA Retail Price Profit per Vehicle (in $) (in $) # Produced Total Profit Generated (in $)
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