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 are:
Small Medium Large
Minimum 14,000 6,200 2,600
Maximum 21,000 12,500 4,200
The production 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?
a. Formulate and solve a linear optimization model using the auxiliary variable cells method and write a short memo to the production manager explaining the sensitivity information.
b. Solve the model without the auxiliary variables and explain the relationship between the reduced costs and the shadow prices found in part a.
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines
Order Paper Now
Looking for a similar assignment? Our writers will offer you original work free from plagiarism. We follow the assignment instructions to the letter and always deliver on time. Be assured of a quality paper that will raise your grade.
Order now and Get a 15% Discount! Use Coupon Code "Newclient"