Explain what is the optimal solution, Operation Management

Assignment Help:

Kentwood Electronics manufactures three components for stereo systems: CD players, tape decks, and stereo tuners. The wholesale price and manufacturing cost of each item are: Component Wholesale Price Manufacturing Cost CD Player $150 $75Tape Deck $85 $35Stereo Tuner $70 $30Each CD player produced requires three hours of assembly; each tape deck requires two hours of assembly; and each tuner requires one hour of assembly. However, the company manufactures these products only in batches of 150 - partial batches are not allowed. The marketing department believes that it can sell no more than 150,000 CD Players, 100,000 tape decks, and 90,000 stereo tuners. It expects a demand for at least 50,000 units of each item and wants to be able to meet this demand. If Kentwood has 400,000 hours of assembly time available, how many batches of CD players, tape decks, and stereo tuners should it produce to maximize profits while meeting the minimum demand figures supplied by marketing? A. Formulate an ILP model for this problem. (Hint: Let your decision variables represent the number of batches of each item to produce.)B. Create a spreadsheet model for this problem and solve it. C. What is the optimal solution? I have quite a bit of this done, but I don't see where I can put an attachment up. Please let me know if you can help.


Related Discussions:- Explain what is the optimal solution

Activity sampling - process design, Activity Sampling - Process Design ...

Activity Sampling - Process Design This is a method of finding the percentage occurrence of a certain activity by statistical sampling and random observation. It is used when

Describe what is the value creation frontier, 1. What is the value creation...

1. What is the value creation frontier? How does each of the four generic business models allow a company to reach this frontier? 2. How can companies' pursuing cost leadership

Explain defect and passed inspection, A manager states that his process is ...

A manager states that his process is really working well. Out of 1,500 parts, 1,477 were produced free of a particular defect and passed inspection. Based upon Six-Sigma theory, ho

Net profit margin, Net profit margin: 1. Transportation firm now ...

Net profit margin: 1. Transportation firm now spends 60 percent of the sales revenue it receives in the supply chain, and has a net profit margin of 6 percent. The compan

Evaluation of the process design, Evaluation of the Process Design On...

Evaluation of the Process Design One of the objectives in designing the process flow is to ensure that goods and services are produced at minimum cost. A major problem confro

Explain measuring the impact of a capital acquisition, Measuring the impact...

Measuring the impact of a capital acquisition on productivity is an example of multifactor productivity.

Describe trade-offs between the competitive dimensions, In your organizatio...

In your organization, describe how there are trade-offs between the competitive dimensions. Give examples.

Oregon productivity matrix - performance measures, Oregon Productivity Matr...

Oregon Productivity Matrix - Performance Measures The Oregon productivity matrix (OPM) was developed in Oregon State University in 1986 and measures accomplishments against go

Explain the probable destiny of lee peterson''s company, Consider this: Lee...

Consider this: Lee Peterson has invented a new product that detects water leaks due to broken pipes and sends out an alarm similar to a smoke alarm. However, Lee has very little pe

Explain biggest barriers to widescale adoption of m-commerce, What do you t...

What do you think are the biggest barriers to wide-scale adoption of m-commerce by consumers? Who do you think is working on solutions to these problems and what might the solution

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd