Question: Using excel solver to complete the question Revor pic has one production line for the manuracture of the ELEN PLUS and ELEN SUPER ignition systems.
Revor pic has one production line for the manuracture of the ELEN PLUS and ELEN SUPER ignition systems. Both models use similar components in their manufacture but the SUPER model usually requires more of them and takes longer to produce. Relevant details are shown in table below. ELEN PLUS ELEN SUPER No. of component A 4 8 No. of component B 2 3 No. of component C 0 10 Manufacturing time (hours) 5 7 There are supply problems for components A and B and daily usage is limited to 400 and 250 respectively. For component C, the company has entered into a contract with its supplier to take at least 150 per day. It is also found that at least twice as many ELEN PLUS models are sold as ELEN SUPER, SO production should reflect this fact. The contribution to profits for the PLUS and SUPER models are 60 and 85 respectively. You can assume that there are 60 employees engaged in the production of these ignition systems and that each employee works an 8-hour day. (a) (b) (c) Formulate this as a linear programming problem, assuming that it is required to maximize profits. Use the graphical technique of linear programming to determine the optimal numbers of ELEN PLUS and ELEN SUPER models to produce each day. What is the daily profit associated with this production? Identify the scarce resources (tight constraints) for this problem. For each determine the shadow price. It is possible to purchase additional quantities of component A from an alternative supplier at a premium of 10 per component. Would it be worthwhile? The unit costs associated with the production of these systems is known to vary. However, the selling price is only changed annually. How much can the profit on the ELEN PLUS model be allowed to vary before the optimal solution found in Question 2 changes
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