Question: Please solve this using Excel QM. Snow King LLC makes snowplowing equipment. The company buys the engines from a 3 rd party vendor Eugenes Engines.

Please solve this using Excel QM.

Snow King LLC makes snowplowing equipment. The company buys the engines from a 3rd party vendor Eugenes Engines. Snow King has the following production schedule for February, March, April, and May: February 60; March 85; April 100; May 120.

Eugenes Engines makes and delivers the products to Snow King during the month the engines are due. Eugenes Engines can only manufacture 40 engines in February; 60 in March; 90 in April; and 50 in July. During the same time that Snow King makes their snowplows, Eugenes Engines has a large order with another client.

Eugenes Engines is exploring several options to meet Snow Kings production schedule. It can produce up to 30 engines in November, December, and January and carry them in inventory at a cost of $50 per engine per month until it ships them to Snow King. For instance, Eugenes Engines could build an engine in November, and deliver it to Snow King in February and incur $150 in inventory cost. Eugenes Engines could also manufacture up to 20 engines in the month they are due on an overtime basis, with an additional cost of $400 per engine.

Eugenes Engines wants to determine the least costly production schedule that will meet Snow Kings schedule.

Instructions:

1) Develop the LP model and determine the optimal production schedule for Eugenes Engines using Excel QM.

2) If Eugene's Engines were able to increase their production capacity in November, December, and January from 30 to 40 engines, what will be the impact on the optimal solution? Explain your answer.

3) Recommend the best operations strategy for Eugene's Engines.

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