Which constraints are non-binding

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Reference no: EM131039461

Embassy Motorcycles (EM) manufacturers two light weight motorcycles designed for easy handling and safety. The EZ-Rider model has a new engine and a low profile that make it easy to balance. The Lady-Sport model is slightly larger, uses a more traditional engine and is specifically designed to appeal to women riders.

Embassy produces the engines for both models at its Des Moines, Iowa, plant. Each EZ-Rider engine requires 6 hours of manufacturing time and each Lady-Sport engine requires 3 hours of manufacturing time. The Des Moines plant has 2100 hours of engine manufacturing time available for the next production period.

Embassy's motorcycle frame supplier can supply as many EZ-Rider frames as needed. However, the Lady-Sport frame is more complex and the supplier can only provide up to 280 Lady-Sport frames for the next production period.

Final assembly and testing requires 2 hours for each EZ-Rider model and 2.5 hours for each Lady-Sport model. A maximum of 1000 hours of assembly and testing time are available for the next production period.

The company's accounting department projects a profit contribution of $2400 for each EZ-Rider produced and $1800 for each Lady-Sport produced.

Solve the problem both graphically and in excel. State your final solution (optimal solution point and OFV in a sentence, within the context of the problem.)

Also, answer the following questions:

i) Which constraints are binding?

ii) Which constraints are non-binding? Is there slack or surplus?

Reference no: EM131039461

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