Reference no: EM132515512
Fly-by-Kite Inc. manufactures recreational kites. Its two products are Inflatable and Traction kites. The manufacturing facility is operating near full capacity, and the owner wants to bid on a contract to manufacture Inflatable kites and Traction kites for a local kite retailer. The retailer would like a maximum of 150 kites with a mix of both products; the retailer is not concerned with the mix percentages. If Fly-by-Kite gets the contract it will face a constraint with current capacity. Fly-by-Kite's owner would like to minimize total costs for the contract and would like to know how to best use the excess capacity.
The owner wants to use linear programming based on the following information:
Manufacturing costs under normal capacity Inflatable Traction
Selling price $ 250.00 $ 560.00
Direct materials 45.10 215.00
Direct labour 33.60 42.00
Overhead (150% of direct labour, all variable) 50.40 63.00
Total costs 129.10 320.00
Profit $ 120.90 $ 240.00
Direct labour hours Machine hours
Current excess capacity 200 240
Manufacturing time:
Inflatable kite 1.60 1.25
Traction kite 2.00 2.25
Question 1: Using IK as the variable name for Inflatable kites and TK as the variable name for Traction kites, which of the following is the correct linear program for Fly-by-Kite?
a) Minimize $120.90 IK + $240.00 TK Subject to: IK, TK > 0 IK + TK ≤150 1.6 IK + 2.00 TK ≤ 200 1.25 IK + 2.25 TK ≤ 240
b) Minimize $129.10 IK + $320.00 TK Subject to: IK, TK > 0 IK + TK ≤ 150 1.6 IK + 2.00 TK ≤ 200 1.25 IK + 2.25 TK ≤ 240
c) Maximize $120.90 IK + $240.00 TK Subject to: IK, TK > 0 IK + TK ≤ 150 1.6 IK + 2.00 TK ≤ 200 1.25 IK + 2.25 TK ≤ 240
d) Minimize $129.10 IK + $320.00 TK Subject to: IK, TK > 0 IK + TK ≥ 150 1.6 IK + 2.00 TK ≥200 1.25 IK + 2.25 TK ≥ 240