The demand for air purifiers has increases as restaurants and other indoor facilities prepare to open...

 

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The demand for air purifiers has increases as restaurants and other indoor facilities prepare to open at full capacity. Honeywell's Eco Solutions Division produces solar air purifiers. To meet increase demand, Honeywell is preparing to make up to 35,000 solar air purifiers per year. They cannot produce more than 35,000 purifiers in one year. These air purifiers are designed for large buildings. Honeywell has identified five production plants where solar air purifiers can be produced. Each air purifier is sold for $4,200. For each plant, the production capacity, the production cost per air purifier, and the fixed cost of operating a plant for one year are given below. Input data on air purifiers Plant Selling price/unit Cost per device Plan Fixed Cost Capacity Northeast $4,200 $1,600 $9,000,000 9,000 Northwest $4,200 $2,000 $5,000,000 8,000 Midwest Southeast $4,200 $4,200 $2,200 $2,100 $3,000,000 $4,000,000 9,000 7,000 Southwest $4,200 $2,900 $2,900,000 7,000 Use Solver to determine which plants and how many air purifiers at each plant Honeywell should produce to maximize its yearly profit for this item. You will need to create your own shell file. Your file should be clearly labeled. In your Excel file, answer the following questions - each answer should be clearly labeled. 1. What is the optimal profit? 2. How many air filters are produced at each plant? Also list plants not selected for production if applicable. 3. Is each selected plant producing at full capacity? If not, explain why. 4. Is there slack or surplus or neither on the constraint of "Honeywell is preparing to make up to 35,000 solar air purifiers per year. They cannot produce more than 35,000 purifiers in one year?" If there is a slack or surplus, calculate the number of units and explain why. The demand for air purifiers has increases as restaurants and other indoor facilities prepare to open at full capacity. Honeywell's Eco Solutions Division produces solar air purifiers. To meet increase demand, Honeywell is preparing to make up to 35,000 solar air purifiers per year. They cannot produce more than 35,000 purifiers in one year. These air purifiers are designed for large buildings. Honeywell has identified five production plants where solar air purifiers can be produced. Each air purifier is sold for $4,200. For each plant, the production capacity, the production cost per air purifier, and the fixed cost of operating a plant for one year are given below. Input data on air purifiers Plant Selling price/unit Cost per device Plan Fixed Cost Capacity Northeast $4,200 $1,600 $9,000,000 9,000 Northwest $4,200 $2,000 $5,000,000 8,000 Midwest Southeast $4,200 $4,200 $2,200 $2,100 $3,000,000 $4,000,000 9,000 7,000 Southwest $4,200 $2,900 $2,900,000 7,000 Use Solver to determine which plants and how many air purifiers at each plant Honeywell should produce to maximize its yearly profit for this item. You will need to create your own shell file. Your file should be clearly labeled. In your Excel file, answer the following questions - each answer should be clearly labeled. 1. What is the optimal profit? 2. How many air filters are produced at each plant? Also list plants not selected for production if applicable. 3. Is each selected plant producing at full capacity? If not, explain why. 4. Is there slack or surplus or neither on the constraint of "Honeywell is preparing to make up to 35,000 solar air purifiers per year. They cannot produce more than 35,000 purifiers in one year?" If there is a slack or surplus, calculate the number of units and explain why.

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Honeywell has capacity of producing 35000 purifiers 1 Optimal Profit Plant Northeast Northwest Midwe... View the full answer