I. A company makes three products the characteristics of which are given below. The resource availability...

Transcribed Image Text:

I. A company makes three products the characteristics of which are given below. The resource availability is also shown. Table 1 Problem 1 Data Product NP1 NP2 NP3 Resources - Availability Material 1 (units) 2 6 3 650 Material 2 (units) 3 4 3 575 Material 3 (units) Material 4 (units) Time in Manufacturing 20 Department (mins) 548 520 650 850 600 10 2175 Time in Assembly Department (mins) 15 20 25 3500 Time in Packaging Department (mins) 2 2.5 3 450 Profit ($) 5 7 6 a) Use Excel Solver to get the solution. What's your observation about the solution? b) If there is a constant demand of 40 units for product NP1, how will it change the solution? Comment about this solution comparing with (a) above. c) Keeping the demand for NP1 as 40 units, allocate a 10% safety stock for Materials and a 15 minute for Time, find the best solution for Month2. Compare the resources leftover after Month2 with Month1 and comment whether the safety stock is beneficial. Use the same Excel workbook but different worksheets for the 3 cases above. d) As an expert SCA, comment on the applicability of resource allocation. In what areas of different industries do you think these could be applied? I. A company makes three products the characteristics of which are given below. The resource availability is also shown. Table 1 Problem 1 Data Product NP1 NP2 NP3 Resources - Availability Material 1 (units) 2 6 3 650 Material 2 (units) 3 4 3 575 Material 3 (units) Material 4 (units) Time in Manufacturing 20 Department (mins) 548 520 650 850 600 10 2175 Time in Assembly Department (mins) 15 20 25 3500 Time in Packaging Department (mins) 2 2.5 3 450 Profit ($) 5 7 6 a) Use Excel Solver to get the solution. What's your observation about the solution? b) If there is a constant demand of 40 units for product NP1, how will it change the solution? Comment about this solution comparing with (a) above. c) Keeping the demand for NP1 as 40 units, allocate a 10% safety stock for Materials and a 15 minute for Time, find the best solution for Month2. Compare the resources leftover after Month2 with Month1 and comment whether the safety stock is beneficial. Use the same Excel workbook but different worksheets for the 3 cases above. d) As an expert SCA, comment on the applicability of resource allocation. In what areas of different industries do you think these could be applied?