16 Cornco produces two products: PS and QT. The sales price for each product and the...

Transcribed Image Text:

16 Cornco produces two products: PS and QT. The sales price for each product and the maximum quantity of each that can be sold during each of the next three months are given in Table 16. Each product must be processed through two assembly lines: 1 and 2. The number of hours required by each prod- uct on each assembly line are given in Table 17. The number of hours available on each assembly line during each month are given in Table 18. Each unit of PS requires 4 pounds of raw material; each unit of QT requires 3 pounds. As many as 710 units of raw material can be purchased at $3 per pound. At the beginning of month 1, 10 units of PS and 5 units of QT are available. It costs $10 to hold a unit of either product in inventory for a month. Solve this LP on LINDO and use your output to answer the following questions: a Find the new optimal solution if it costs $11 to hold a unit of PS in inventory at the end of month 1. b Find the company's new optimal solution if 210 hours on line 1 are available during month 1. c Find the company's new profit level if 109 hours are available on line 2 during month 3. d What is the most Cornco should be willing to pay for an extra hour of line 1 time during month 2? e What is the most Cornco should be willing to pay for an extra pound of raw material? f What is the most Cornco should be willing to pay for an extra hour of line 1 time during month 3? g Find the new optimal solution if PS sells for $50 during month 2. h Find the new optimal solution if QT sells for $50 during month 3. i Suppose spending $20 on advertising would increase demand for QT in month 2 by 5 units. Should the ad- vertising be done? TABLE 16 Month 1 Product Price (5) Demand PS QT 40 35 TABLE 17 Product Line 1 PS 3 QT Line 1 2 2 TABLE 18 1,200 2,140 50 43 Hours Month 2 Month 2 Price (3) Demand Line 2 160 150 60 40 3 190 110 45 50 Month 3 Price (5) Demand 55 44 50 40 16 Cornco produces two products: PS and QT. The sales price for each product and the maximum quantity of each that can be sold during each of the next three months are given in Table 16. Each product must be processed through two assembly lines: 1 and 2. The number of hours required by each prod- uct on each assembly line are given in Table 17. The number of hours available on each assembly line during each month are given in Table 18. Each unit of PS requires 4 pounds of raw material; each unit of QT requires 3 pounds. As many as 710 units of raw material can be purchased at $3 per pound. At the beginning of month 1, 10 units of PS and 5 units of QT are available. It costs $10 to hold a unit of either product in inventory for a month. Solve this LP on LINDO and use your output to answer the following questions: a Find the new optimal solution if it costs $11 to hold a unit of PS in inventory at the end of month 1. b Find the company's new optimal solution if 210 hours on line 1 are available during month 1. c Find the company's new profit level if 109 hours are available on line 2 during month 3. d What is the most Cornco should be willing to pay for an extra hour of line 1 time during month 2? e What is the most Cornco should be willing to pay for an extra pound of raw material? f What is the most Cornco should be willing to pay for an extra hour of line 1 time during month 3? g Find the new optimal solution if PS sells for $50 during month 2. h Find the new optimal solution if QT sells for $50 during month 3. i Suppose spending $20 on advertising would increase demand for QT in month 2 by 5 units. Should the ad- vertising be done? TABLE 16 Month 1 Product Price (5) Demand PS QT 40 35 TABLE 17 Product Line 1 PS 3 QT Line 1 2 2 TABLE 18 1,200 2,140 50 43 Hours Month 2 Month 2 Price (3) Demand Line 2 160 150 60 40 3 190 110 45 50 Month 3 Price (5) Demand 55 44 50 40

Answer rating: 100% (QA)

To solve this Linear Programming LP problem using LINDO we need to set up the objective function and constraints based on the given information The ob... View the full answer