PLEASE PLEASE I KNOW YOU PROBABLY ALREADY KNOW WHAT TO DO BUT BE AS
CLOSE AS POSSIBLE TO THE explaination BELOW PLEASE!!!! I NEED GOOD
13-7. Klein Industries manufactures three types of portable air
compressors: small, medium, and large, which have unit profits of
$20.50, $34.00, and $42.00, respectively. The projected monthly sales
Small Medium Large
Minimum 14,000 6,200 2,600
Maximum 21,000 12,500 4,200
process consists of three primary activities: bending and forming,
welding, and painting. The amount of time in minutes needed to process
each product in each department is shown below:
Small Medium Large Available Time
Bending/forming 0.4 0.7 0.8 23,400
Welding 0.6 1.0 1.2 23,400
Painting 1.4 2.6 3.1 46,800
How many of each type of air compressor should the company produce to maximize profit?
and solve a linear optimization model using the auxiliary variable cells
method and write a short memo to the production manager explaining the
b. Solve the
model without the auxiliary variables and explain the relationship
between the reduced costs and the shadow prices found in part a.
Solution Tip: You must use
Solver tool in Excel. Set your constraints right, and fill in the solver
dialogue box properly. Be sure to review links provided in the last
lesson, or in one of the announcements in the first week of class. Here
is a You Tube link you could view:
Given that many of you had issues downloading and setting up Premium
Solver's 15-day trial version, I will give you full credit for the
homework assignment if you do the following:
Correctly set up and solve the Excel optimization problem that will
result in the correct production decision and profit maximization.
Please remember that you must include your Excel spreadsheet in your
Draft a managerial memo (either in MS Word or MS Excel) that will discuss:
Profit optimization decision and the number of units produced.
Binding constraints of your production process.
Managerial actions that should be taken in the future to increase
maximum profits (these should be based on your binding constraints -
e.g., can you increase capacity of your plant to eliminate bottlenecks?)
If you are able to provide sensitivity and shadow price analysis, you will receive extra credit - up to 15 additional points.