Reference no: EM132400439
Scenario
Assume you are in charge of planning optimum production mix for your company who manufactures computers- Your company divides its product line into two basic categories: desktop computers and laptops. Each product line is sold under two labels. a discount line and a premium line. Each computer requires a specified number of hours for assembly and labour costs are S20,hour. The factory is operating at full capacity, and you have only 4500 hours of labour to allocate among the various products. Discount and premium-brand desktops require two and three hours respectively. Discount and premium-brand laptops use three and five hours respectively. The marketing department has determined that you cannot sell more than SOO desktop units. nor more than 900 laptops per week. The total demand for discount and premium lines is 700 and 1.000 computers respectively per week. Desktop and laptop computers from the discount line have unit profits (before labour) of $600 and 5800 respectively. The premium desktop and laptop computers have unit profits (before labour) of S1.000 and 51.300. respectively. How many computers of each type do you manufacture each week in order to maximize total profit?
1. State the objective function as an equation.
2. State the variables of the equation
3. State the constraints.
4. Solve for problem above using Solver
Memo
Prepare a memo for each scenario. In your memo you should highlight your conclusions with quantitative analysis that responds to the scenario questions.
Scenario
Sweetwater Company manufactures two soft drinks. Zip and Pep. Each soft drink is manufactured in batches. The material requirement for a batch of each drink are as
Material A (litres) Material B (kilograms)
Zip usage per batch 10 24
Pep usage per batch 20 16
Total raw materials available week 8.000 9600
Each batch of Zip yields a total CM of $75, each batch of Pep yields a CM of $90. The company wants to maximize contribution margin
Let x = Zip and Let v = Pep.
1. State the objective function as an equation.
2. State the variables of the equation.
3. State the constraints.
4. Determine how many batches of Zip and Pep should be produced each week using the graphical method to solve as well as in solver. (Graphical method should be completed in Excel) .
5. Solve for each intersection point manually.
Compute the profit at each point to support your most profitable decision.
Scenario #2
The Buffalo Steakhouse is looking at conducing an advertising campaign for its restaurant business across the Northeast United States. The advertising campaign has a budget of 3125.000 per week. The marketing director wants to establish presence in both magazines and radio and requires a minimum of 4 magazine ads and 10 radio ads each week.
Each magazine ad costs 310.000 and is seen by one million readers. Each radio commercial costs $5.000 and is heard by 250.000 listeners. How many ads of each type should be placed in order to reach at least 10 million customers at minimum cost?
1. State the objective function as an equation.
2. State the variables of the equation.
3. State the constraints.
4. Solve for problem above using Solver