Question: Machine Fixed Cost $ Variable Cost $ Capacity 1 1000 21 500 2 950 23 600 3 875 25 750 4 800 20 600 5
| Machine | Fixed Cost $ | Variable Cost $ | Capacity | |||
|---|---|---|---|---|---|---|
| 1 | 1000 | 21 | 500 | |||
| 2 | 950 | 23 | 600 | |||
| 3 | 875 | 25 | 750 | |||
| 4 | 800 | 20 | 600 | |||
| 5 | 700 | 26 | 800 | |||
| 6 | 850 | 24 | 400 |
Radford Castings can produce brake shoes on six different machines. The following table summarizes the manufacturing costs associated with producing the brake shoes on each machine along with the available capacity on each machine. If the company has received an order for 1,800 brake shoes, how should it schedule these machines?
2) Volume discount
Suppose that the variable cost for using Machine 6 drops to $20 per brake shoe if the company produces more than 150 total brake shoes on that machine. In either case (whether they produce at most 150 or more than 150), all brake shoes produced on Machine 6 will incur the same variable cost.a.Formulate an IP model for this new problem (i.e., provide the mathematical model formulation)b. Create a spreadsheet model for this new problem on a new worksheet in the same workbook, and solve it using Solvers. What is the optimal solution now?
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