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PJ Shops is planning to expand its facilities. Currently they are planning for a new manufacturing facility in Lyman. The shop they have purchased for this expansion has 50,000 square feet of useable space. The budget for the expansion project is 10,000,000. Management is attempting to allocate this space among four departments. Historical trends are shown in the following table:

Profit (sqft)      Invest (sqft)      Min. Size          Max. Size  

Grind               40.00               120                  10,000             25,000

Broach 30.00               240                  20,000             35,000

Mill                  25.00               150                  5,000              10,000

Assemble         15.00               50                   2,000              10,000

Additionally, the Grind department cannot be more than 15% larger than the Broach department

Requirement 1: provide your profit-maximizing LP formulations (state the objective function and constraints)

Requirement 2: provide the Excel Solver solution in a screen capture for the problem.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92060504

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