Spectra Electronics manufactures five different models of telecommunications interface cards for desktop and laptop PCs. As...

   

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Spectra Electronics manufactures five different models of telecommunications interface cards for desktop and laptop PCs. As summarized in Table 1, each of these devices requires differing amounts of printed circuit (PC) board, resistors, memory chips and assembly. Table 1. Per Unit Requirements HyperLink FastLink Speed Lin MicroLink EtherLink k PC Board (sq. in.) 20 15 10 8 Resistors 22 24 18 12 Memory Chips 6 8 4 4 Assembly Labor (hours) 0.75 0.6 0.5 0.65 The unit wholesale price and manufacturing costs for each model are as follows. Note: the profit per unit is the wholesale price minus the manufacturing cost. Per Unit Revenues and Costs HyperLink EtherLink $189.00 FastLink SpeedLink MicroLink $149.00 $149.00 $169.00 $101.00 $96.00 $137.00 Wholesale price Manufacturing cost $139.00 $136.00 $101.00 In their next production period, Spectra has 80,000 square inches of PC board, 100,000 resistors, 30,000 memory chips and 5000 hours of assembly time available. The marketing environment requires that they produce at least 500 units of each model and that the number of HyperLinks produced be at least twice the number of Speed Links produced. Note that the profit margin per unit manufactured and sold, is equal to the wholesale price minus the manufacturing cost. Create a Solver-based spreadsheet model to determine the number of each of the five interface cards products to produce in the next production period in order to maximize profit and solve the model. 5661 Comments and Hints: 1. Be sure to use sumproduct, formulas that can be copied and range constraints. 2. Don't let the terms wholesale price and manufacturing cost mislead you into thinking this is a make or buy problem. It is a profit maximization problem where the only option is to make. 3. The restriction "the number of HyperLinks produced be at least twice the number of SpeedLinks produced must be handed with a "linearized " ratio constraint. It cannot be correctly handed by simply doubling the minimum number of HyperLink cards from 500 to 1000. Spectra Electronics manufactures five different models of telecommunications interface cards for desktop and laptop PCs. As summarized in Table 1, each of these devices requires differing amounts of printed circuit (PC) board, resistors, memory chips and assembly. Table 1. Per Unit Requirements HyperLink FastLink Speed Lin MicroLink EtherLink k PC Board (sq. in.) 20 15 10 8 Resistors 22 24 18 12 Memory Chips 6 8 4 4 Assembly Labor (hours) 0.75 0.6 0.5 0.65 The unit wholesale price and manufacturing costs for each model are as follows. Note: the profit per unit is the wholesale price minus the manufacturing cost. Per Unit Revenues and Costs HyperLink EtherLink $189.00 FastLink SpeedLink MicroLink $149.00 $149.00 $169.00 $101.00 $96.00 $137.00 Wholesale price Manufacturing cost $139.00 $136.00 $101.00 In their next production period, Spectra has 80,000 square inches of PC board, 100,000 resistors, 30,000 memory chips and 5000 hours of assembly time available. The marketing environment requires that they produce at least 500 units of each model and that the number of HyperLinks produced be at least twice the number of Speed Links produced. Note that the profit margin per unit manufactured and sold, is equal to the wholesale price minus the manufacturing cost. Create a Solver-based spreadsheet model to determine the number of each of the five interface cards products to produce in the next production period in order to maximize profit and solve the model. 5661 Comments and Hints: 1. Be sure to use sumproduct, formulas that can be copied and range constraints. 2. Don't let the terms wholesale price and manufacturing cost mislead you into thinking this is a make or buy problem. It is a profit maximization problem where the only option is to make. 3. The restriction "the number of HyperLinks produced be at least twice the number of SpeedLinks produced must be handed with a "linearized " ratio constraint. It cannot be correctly handed by simply doubling the minimum number of HyperLink cards from 500 to 1000.

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