This assignment entails material on Linear Programming.

Please work on the assignment individually. This is your opportunity to learn more about the material covered and get ready for the exam.

You will submit your answers to the questions on Blackboard, as you did in assignment 1. The online questions will be available on Blackboard in the content area of this assignment. I will inform you when the questions become available. Until then, you can start working on the assignment and build the model in Excel to find the optimal solution.

The assignment is due on Thursday, December 9, at 11:30 pm.

Problem Description

A small firm makes three products, which all follow the same three-step process, which consists of milling, inspection, and drilling. Product A requires 6 minutes of milling, 5 minutes of inspection, and 4 minutes of drilling; product B requires 2.5 minutes of milling, 2 minutes of inspection, and 2 minutes of drilling; and product C requires 5 minutes of milling, 4 minutes of inspection, and 8 minutes of drilling. The department has 20 hours available during the next period for milling, 15 hours for inspection, and 24 hours for drilling. Product A contributes $6.00 per unit to profit, product B contributes $4.00 per unit, and product C contributes $10.00 per unit.

Build an LP model that helps you determine the optimal product mix that would maximize the firms profit.

After formulating the LP model, build the model in Excel and use Solver to find the optimal solution.

1. How many constraints do we have in the LP model?

4

6

3

2

2) The firm's owner wants to produce 14 units of product A, even if this means that his profit will not be optimal. What will be the new profit in this case? Please round your answer to the nearest integer and do not use the $ sign and the thousands' comma separator.

3) The profit contribution of product C increased by $ 4.4 per unit. What is the new optimal profit? Please round your answer to the nearest integer and do not use the $ sign and the thousands' comma separator

4) Because of some re-allocation of resources, the drilling time availablenfor these three products has increased by 4.3 hours. What is the new optimla profit in this case? Please round your answer to the nearest integer and do not use the $ sign and the thousands' comma separator