Develop a linear programming model and solve it using Excel
Solver. Then use the Answer, Sensitivity and Limits Reports to
answer the following questions.
The manufacturing manager at Grips Co. has determined that they
will be unable to produce all of the products needed for next year.
There are three types of rubber grips that they make. The sales
manager has found a company (Rubber Ducky Inc.) that can provide
the grips for the following price. Rubber Ducky Inc. wants a
guaranteed order for next year for each grip and they have a total
capacity of 60,000 for next year for all grips.
|
Grip Type |
Price to Purchase |
Order Minimum |
|
GX11 |
$5.00 |
1000 |
|
SPP2 |
$6.50 |
2000 |
|
LMT29 |
$8.25 |
3500 |
The processes involved in making the
grips are rubber mixing, injection, and trimming. The manufacturing
manager has determined that rubber mixing has plenty of capacity
and does not need to be considered. The injection and trimming
process requirements are listed below.
|
Process |
Required min per GX11 |
Required min per SPP2 |
Required min per LMT29 |
Total available min |
|
Injection |
2 |
2.5 |
4 |
300,000 |
|
Trimming |
1 |
0.5 |
1.5 |
120,000 |
The cost to produce each grip type is
listed below.
|
Grip Type |
Price to Process |
|
GX11 |
$4.25 |
|
SPP2 |
$5.80 |
|
LMT29 |
$7.00 |
The demand for next year for the GX11
is 50,000, the demand for the SPP2 is 40,000 and the demand of
LMT29 is 35,000.
4. If the cost of producing GX11 increases by $0.15, would we
chose to make less of them and order more?
ScholarMatic: Explanation & Answer
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