Question: please solve using excel Futuris Co. considers increasing its level of automation by replacing some of its old machines with modern automatic machines that require
please solve using excel

Futuris Co. considers increasing its level of automation by replacing some of its old machines with modern automatic machines that require fewer operators. The company operates 51 weeks per year, 6 days per week, and 1 shift per day. Also, 7 utility workers are employed and 18 similar machines are being used, each operated by 9 direct workers. Each worker's hourly wage is $11. Currently, there are two models available in the market with the following specifications: Futuris Co. has allocated an annual budget of $335,000 over five years, and considers improving (decreasing) its manning level by at least 11.2%. Calculate the minimum total number of RX-1 and RX-2 machines that can be replaced using the allocated budget, while satisfying the manning level target. Report your answer as a single number, in which the optimal numbers of RX-1 and RX-2 machines appear on the left and right sides of a decimal symbol, respectively. For example, if three RX-1 and four RX-2 machines should be purchased and replaced, then the answer should be entered as 3.4. Hint: Formulate the problem as an Integer Linear Programming model and solve using Lindo or Excel (recommended). Watch videos on how to formulate and solve such models in Excel. The decision variables can be m1 and m2, which are integer numbers respectively representing the number of RX1 and RX2 machines to be purchased and installed. The objective function is to minimize the combined number of the new machines. The constraints are (1) keeping the reduction percentage in the manning level greater than or equal to the given target level, (2) the total number of new machines cannot exceed the current number of machines, and (3) the total annual cost of replacement cannot exceed the available budget
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
