A manufacturing company produces four different models of integrated circuits. Each type of circuit requires material, labor, and machine time. The optimal combination of the four types of circuits is limited by the constraints of availability for these three resources. The formulation of the linear programming production problem is:
Maximize Z = 12×1 10×2 15×3 11×4 (objective function for profit)
Subject to the following constraints:
Material:
5×1 3×2 4×3 2×4 = 240 pounds
Machine time:
6×1 8×2 2×3 3×4 = 240 hours
Labor:
2×1 3×2 3×3 2×4 = 180 hours
Nonnegativity: x1, x2, x3, x4 = 0
Where: x1 = quantity of Product 1 produced x2 = quantity of Product 2 produced x3 = quantity of Product 3 produced x4 = quantity of Product 4 produced
Use Microsoft Excel and Solver to find the optimal solution for the production problem. Be sure that values selected by the computer are integers (as it doesn’t make any sense to discuss producing part of a unit of a product).
Include your interpretation of the results by stating:
How many of each product will be produced?
What is the profit for the optimal solution?
What resource(s) is limiting the production?
Submit the solution for the production problem in a Microsoft Excel worksheet with proper labeling for columns and all required calculations. Submit your interpretations in a 1- to 2-page Microsoft Word document.
Support your responses with examples.
Cite any sources in APA format.
Submission Details
Name your documents SU_MGT4059_W3_A2_LastName_FirstInitial.docx and SU_MGT4059_W3_A2_LastName_FirstInitial.xlsx.
Submit your documents to the W3 Assignment 2 Dropbox by Tuesday, November 26, 2013.
Assignment 2 Grading Criteria
Maximum Points
Correctly implemented this problem in Microsoft Excel using the Solver add-in.
60
Determined how many units of each product would be produced.
45
Determined the profit for the optimal allocation of resources.
35
Discussed the resource(s) that is limiting the system from producing even more units of product (and, thereby, earning more profit).
50
Written components.
10
Total:
200
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more