Scenario 1: The ABC Corporation manufactures three electrical products; humidifiers, fans and air cleaners. The manufacturing process is composed of three processes: wiring, packaging and assembly.
During the next production period, 2000 hours of wiring time are available, 60 hours of packing and up to 1500 hours of assembly time may be used.
The following table presents the production requirements per unit:
Bill of Labor
|
Product
|
Wiring
|
Assembly
|
Packaging
|
|
Humidifiers
|
2 hrs.
|
3 hrs.
|
1.25 hrs.
|
|
Air Cleaners
|
1 hrs.
|
4 hrs.
|
0.75 hrs.
|
|
Fans
|
1.25 hrs.
|
2.1 hrs.
|
1.50 hrs.
|
Standard Costs
|
Product
|
Material
|
Labor
|
Overhead
|
Selling Price
|
|
Humidifiers
|
$17.50
|
$7.50
|
$26.45
|
$75
|
|
Air Cleaners
|
$26.15
|
$6.35
|
$19.75
|
$70
|
|
Fans
|
$6.55
|
$4.75
|
$9.55
|
$36.25
|
Scenario 2: Management did not like the solution presented in Scenario 3 above and, based on its open order file, placed additional constraints on the model.
First there was an open order for at least 10 h humidifiers, and 12 air cleaners, which have to be made, additionally after checking the inventory decided that no more than 20 fans should be made.
: Formulate and solve this LP production mix situation to find the best combination of air conditioners, humidifiers and fans and that yields the highest profit. Feel free to use the Excel template provided or the corner point method.
: Round your Solution Values to a whole number and calculate the profit using the rounded solution.