MegaCable Sdn. Bhd. is the largest power cable manufacturer in Malaysia. As the cross-linked polyethylene (XLPE)...
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MegaCable Sdn. Bhd. is the largest power cable manufacturer in Malaysia. As the cross-linked polyethylene (XLPE) cable is becoming more in demand due to its good properties compared to other cables, the company has decided to manufacture only XLPE cables covering all three levels of voltages; Low Voltage (LV), Medium Voltage (MV) and High Voltage (HV). Table 1 summarizes the raw materials required to manufacture a drum of cable for each voltage level. The company procures 1125 kg of XLPE, 2250 strands of copper conductor and 1250 kg of PVC every month. However, the copper price has recently dropped by 20% and the company has decided to procure an addition of 20% for all three raw materials to increase the cable production in the month of October 2019. XLPE (kg/drum) Copper Conductor (strands/drum) PVC (kg/drum) Profit (RM/drum) Low Voltage 25 20 20 Table 1 1000 Medium Voltage 30 40 33 2500 High Voltage 50 50 60 3500 (a) Set-up the linear programming to achieve the maximum profit from selling all power cables produced in the month of October 2019. [5 marks] (b) From linear programming in (a), estimate the number of power cables for every voltage level to achieve maximum profit for the month of October 2019 using Simplex method. State the maximum profit and amount of power cables for every voltage level that can be produced from your solution for the month of October 2019. [15 marks] MegaCable Sdn. Bhd. is the largest power cable manufacturer in Malaysia. As the cross-linked polyethylene (XLPE) cable is becoming more in demand due to its good properties compared to other cables, the company has decided to manufacture only XLPE cables covering all three levels of voltages; Low Voltage (LV), Medium Voltage (MV) and High Voltage (HV). Table 1 summarizes the raw materials required to manufacture a drum of cable for each voltage level. The company procures 1125 kg of XLPE, 2250 strands of copper conductor and 1250 kg of PVC every month. However, the copper price has recently dropped by 20% and the company has decided to procure an addition of 20% for all three raw materials to increase the cable production in the month of October 2019. XLPE (kg/drum) Copper Conductor (strands/drum) PVC (kg/drum) Profit (RM/drum) Low Voltage 25 20 20 Table 1 1000 Medium Voltage 30 40 33 2500 High Voltage 50 50 60 3500 (a) Set-up the linear programming to achieve the maximum profit from selling all power cables produced in the month of October 2019. [5 marks] (b) From linear programming in (a), estimate the number of power cables for every voltage level to achieve maximum profit for the month of October 2019 using Simplex method. State the maximum profit and amount of power cables for every voltage level that can be produced from your solution for the month of October 2019. [15 marks]
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Managerial Economics and Business Strategy
ISBN: 978-0071267441
7th Edition
Authors: Michael R. baye
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