# MATS 540 ASSIGNMENT 1

Aug 23rd, 2015
Anonymous
Category:
Engineering
Price: \$20 USD

Question description

i need the solution to this problem:

Ray Brown owns Ray’s Speed, a bicycle shop. Most of Ray’s bicycle sales are customer order; however, he also stocks bicycle for walk-in customer. He stocks three types of bicycles; road- racing, cross-country, and mountain. A road-racing bike cost \$1200, a cross-country bike costs \$1700, and a mountain bike costs \$900. He sells road-racing bikes for \$1800, cross-country bikes for \$2,100, and mountain bikes for \$1,200. He has \$12,000 available this month to purchase bikes. Each bike must be assembled; a road-racing bike requires 8 hours to assemble a cross-country bike requires 12 hours, and a mountain bike requires 16 hours. He estimates that he and his employees have 120 hours available to assemble bikes. He has enough space in his store to order 20 bikes this month. Based on past sales, he wants to stock at least twice as many mountain bikes as the other two combined because mountain bikes sell better.

a. solve this problem

b. should Ray try to increase his budget for purchasing bikes, increase space to stock bikes, or increase labor hours to ensemble bikes? why?

c. if ray hired an additional worker for 30 hours at \$10 per hour, how much additional profit would he make, if any?

d. if ray purchased a cheaper cross-country bike for \$1,200 and sold it for \$1,900, would this affect the original solution?

This is the instruction for the problem:

It will be a problem with at least three (3) constraints and at least two (2) decision variables. The problem will be bounded and feasible. It will also have a single optimum solution (in other words, it won’t have alternate optimal solutions). The problem will also include a component that involves sensitivity analysis and the use of the shadow price.

You will be turning in two (2) deliverables, a short writeup of the project and the spreadsheet showing your work.

Writeup.

Your writeup should introduce your solution to the project by describing the problem. Correctly identify what type of problem this is. For example, you should note if the problem is a maximization or minimization problem, as well as identify the resources that constrain the solution. Identify each variable and explain the criteria involved in setting up the model. This should be encapsulated in one (1) or two (2) succinct paragraphs.

After the introductory paragraph, write out the L.P. model for the problem. Include the objective function and all constraints, including any non-negativity constraints. Then, you should present the optimal solution, based on your work in Excel. Explain what the results mean.

Finally, write a paragraph addressing the part of the problem pertaining to sensitivity analysis and shadow price.

Excel.

As previously noted, please set up your problem in Excel and find the solution using Solver. Clearly label the cells in your spreadsheet. You will turn in the entire spreadsheet, showing the setup of the model, and the results.

(Top Tutor) pallveechem123
School: Carnegie Mellon University

Studypool has helped 1,244,100 students

Review from student
Anonymous
" Goes above and beyond expectations ! "

1824 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors