Question: - Present the formula used and explain why you are using that formula - Explain your constraints and other information in the parameter dialogue box
Present the formula used and explain why you are using that formula
Explain your constraints and other information in the parameter dialogue box
Explain the results and answer the case questions
and answer each subletter
Automobile Alliance, a large automobile manufacturing company, organizes the vehicles it manufactures into three families: a family of trucks, a family of small cars, and a family of midsized and luxury cars. One plant outside Detroit, Michigan, assembles two models from the family of midsized and luxury cars. The first model, the Family Thrillseeker, is a fourdoor sedan with vinyl seats, plastic interior, standard features, and excellent gas mileage. It is marketed as a smart buy for middleclass families with tight budgets, and each Family Thrillseeker sold generates a modest profit of $ for the company. The second model, the Classy Cruiser, is a twodoor luxury sedan with leather seats, wooden interior, custom features, and navigational capabilities. It is marketed as a privilege of affluence for uppermiddleclass families, and each Classy Cruiser sold generates a healthy profit of $ for the company.Rachel Rosencrantz, the manager of the assembly plant, is currently deciding the production schedule for the next month. Specifically, she must decide how many Family Thrillseekers and how many Classy Cruisers to assemble in the plant to maximize profit for the company. She knows that the plant possesses a capacity of laborhours during the month. She also knows that it takes six laborhours to assemble one Family Thrillseeker and laborhours to assemble one Classy Cruiser. Because the plant is simply an assembly plant, the parts required to assemble the two models are not produced at the plant. Instead, they are shipped from other plants around the Michigan area to the assembly plant. For example, tires, steering wheels, windows, seats, and doors all arrive from various supplier plants. For the next month, Rachel knows that she will only be able to obtain doors from the door supplier. A recent labor strike forced the shutdown of that particular supplier plant for several days, and that plant will not be able to meet its production schedule for the next month. Both the Family Thrillseeker and the Classy Cruiser use the same door parts, with four needed for the Family Thrillseeker and two for the Classy Cruiser. In addition, a recent company forecast of the monthly demands for different automobile models suggests that the demand for the Classy Cruiser is limited to cars. There is no limit on the demand for the Family Thrillseeker within the capacity limits of the assembly plant.
aFormulate and solve a linear programming model to determine the number of Family Thrillseekers and the number of Classy Cruisers that should be assembled. Before she makes her final production decisions, Rachel plans to explore the following questions independently, except where otherwise indicated.
bThe marketing department knows that it can pursue a targeted $ advertising campaign that will raise the demand for the Classy Cruiser next month by percent. Should the campaign be undertaken?
cRachel knows that she can increase next months plant capacity by using overtime labor. She can increase the plants laborhour capacity by percent. With the new assembly plant capacity, how many Family Thrillseekers and how many Classy Cruisers should be assembled?
dRachel knows that overtime labor does not come without an extra cost. What is the maximum amount she should be willing to pay for all overtime labor beyond the cost of this labor at regulartime rates? Express your answer as a lump sum.
e Rachel explores the option of using both the targeted advertising campaign and the overtime laborhours. The advertising campaign raises the demand for the Classy Cruiser by percent, and the overtime labor increases the plants laborhour capacity by percent. How many Family Thrillseekers and how many Classy Cruisers should be assembled using the advertising campaign and overtime laborhours if the profit from each Classy Cruiser sold continues to be percent more than for each Family Thrillseeker sold?
f Knowing that the advertising campaign costs $ and the maximum usage of overtime laborhours costs $ beyond regular time rates, is the solution found in part e a wise decision compared to the solution found in part a
gAutomobile Alliance has determined that dealerships are actually heavily discounting the price of the Family Thrillseekers to move them off the lot. Because of a profit sharing agreement with its dealers, the company is not making a profit of $ on the Family Thrillseeker but instead is making a profit of $ Determine the number of Family Thrillseekers and the number of Classy Cruisers that should be assembled given this new discounted profit.
hThe comp
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