Question: Olympic Bike company is introducing two new lightweight bicycle frames, the Deluxe and the Professional, to be made from special aluminium and steel alloys. The
Olympic Bike company is introducing two new lightweight bicycle frames, the Deluxe and the Professional, to be made from special aluminium and steel alloys. The anticipated unit profits are $10 for the Deluxe and $15 for the Professional. The number of pounds of each alloy needed per frame is summarized in the table below. A supplier delivers 100 pounds of the aluminium alloy and 80 pounds of the steel alloy weekly.
|
| Aluminium Alloy | Steel Alloy |
| Deluxe | 2 | 3 |
| Professional | 4 | 2 |
- Task 1
- Model the above problem as an optimization problem maximizing the weekly profit contribution:
- define the decision variables
- define the objective function
- state the constraints
- Solve the problem using Excel Solver
- Task 2
- Suppose the profit on deluxe frames is increased to $20. Update the model you created for Task-1 with the new value.
Is the above solution in task 1 still optimal (the value of the decision variables still the same)? What is the value of the objective function when this unit profit is increased to $20?
- Based on the value of the objective function after the change, what is your suggestion for the company? Justify your answer.
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