Formulate and solve for recommended production qualities

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Reference no: EM13194074

Vollmer manufacturing makes three components for sale to refrigeration companies. The components are processed on two machines: a shaper and a grinder. The times (in minutes) required on each machine are as follows:

Component Machine

Shaper Grinder
1 6 4
2 4 5
3 4 2

The shaper is available for 120 hours, and the grinder is available for 110 hours. No more than 200 units of component3 can be sold, but up to 1000 units of each of the other components can be sold. In fact, the company already has orders for 600 units of component1 that must be satisfied. The profit contributions for components 1, 2 and 3 are $8, $6, and $9 respectively.

a. Formulate and solve for recommended production qualities.
b. What are the objective coefficient ranges for the three components? Interpret these ranges for company management.
c. What are the right-hand-side ranges? Interpret these ranges for company management.
d. If more time could be made available on the grinder, how much would it be worth?
e. If more units of component 3 can be sold by reducing the sales price by $4, should the company reduce the price?

Reference no: EM13194074

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