Question: Valu-Com Electronics manufactures five different models of telecommunications interface cards for personal and laptop computers. As summarized in the following table, each of these devices
Valu-Com Electronics manufactures five different models of telecommunications interface cards for personal and laptop computers. As summarized in the following table, each of these devices requires different amounts of printed circuit (PC) boards, resistors, memory chips, and assembly.
|
| HyperLink | FastLink | SpeedLink | MicroLink | EtherLink |
| PC Board (Square Inches) | 20 | 15 | 10 | 8 | 5 |
| Resistors | 28 | 24 | 18 | 12 | 16 |
| Memory Chips | 8 | 8 | 4 | 4 | 6 |
| Assembly Labor (in hours) | 0.75 | 0.6 | 0.5 | 0.65 | 1 |
The unit wholesale and manufacturing cost for each model is as follows.
|
| HyperLink | FastLink | SpeedLink | MicroLink | EtherLink |
| Wholesale Price | $189 | $149 | $129 | $169 | $139 |
| Manufacturing Cost | $136 | $101 | $96 | $137 | $101 |
In their next production period, Valu-Com has 90,000 square inches of the PC board, 100,000 resistors, 30,000 memory chips, and 5000 hours of assembly time available. They can sell all the products they can manufacture, but the marketing department wants to be sure they produce at least 500 units of each product and at least twice as many Fast Link cards as HyperLink cards. Formulate an LP model to maximize the profit. I suggest you write down the complete formulation, including decision variables, objective function, and constraints first before you answer the multiple-choice questions.
Given the following decision variables:
X1: Number of Hyperlinks to produce
X2: Number of FastLinks to produce
X3: Number of SpeedLinks to produce
X4: Number of MicroLinks to produce
X5: Number of EtherLinks to produce
What is the objective function?
Group of answer choices
A.
Max [(189-136)X1+(149-101)X2+(129-96)X3+(169-137)X4+(139-101)X5]
B.
Min [(189-136)X1+(149-101)X2+(129-96)X3+(169-137)X4+(139-101)X5]
C.
Max (189X1+149X2+129X3+169X4+139X5)
D.
Min (136X1+101X2+96X3+137X4+101X5)
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