Manufacturer of tires produces two kinds of tires

Reference no: EM131692483

A manufacturer of tires produces two kinds of tires. The premium tire, The Last-Forever, is a steel-belted, puncture-resistant, long-wear tire that holds all records for quality within the industry. The other tire, Lane-Handler, is a simple low cost 40,000 mile warranty unbranded tire. The Last-Forever contributes $50 per tire to the bottom line for the company, while the Lane-Handler contributes only $10 to the bottom line. Both tires are manufactured at the same factory and require the same machines to be produced. Machine A and machine B are both used in the two-step process used to make the tires. The time consumed in hours on each machine to fabricate a tire are given below.

Machine A

Lane-Handler - 1

Last-Forever - 4

Total Hours Available - 120

Machine B

Lane -Handler - 2

Last-Forever - 2

Total Hours Available - 100

Twenty Lane-Handlers have been promised to a valued dealer and 4 Last-Forevers have been promised the owner’s son.

(a) Find the product mix that maximizes profit.

(b) What is the OV? (optimal solution or objective function value)

(d) What would be the impact if a maintenance problem reduced available machine A hours to 100?

Reference no: EM131692483

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