PROVIDE SOLUTION IN WORD FORMAT AND EXCEL FORMAT

| March 13, 2016

Question
NOTE: PROVIDE SOLUTION IN WORD FORMAT AND EXCEL FORMAT

Scenario 1: The All Season Corporation manufactures two electrical products: air conditioners and large fans. The assembly process for each is similar in that both require a certain amount of wiring and drilling. Each air conditioner takes 6.42 hours of wiring and 5.19 hours of drilling. Each fan must go through 4.85 hours of wiring and 6.05 hours of drilling. During the next production period, 350 hours of wiring time are available and up to 405 hours of drilling time may be used. Each air conditioner sold yields a profit of $73.85. Each fan assembled may be sold for a $62.35 profit. (5 points each for a total of 10 points)

Question 1: Formulate and solve this LP production mix situation to find the best combination of air conditioners and fans and that yields the highest profit. Feel free to use the Excel template provided or the corner point method.

Question 2: Round your Solution Values to a whole number and calculate the profit using the rounded solution.

Scenario 2: All Season’s management realizes that it forgot two critical constraints (see Question #1 above). In particular, management decides that there should be a minimum number of air conditioners produced in order to fulfill a contract to a good customer. Also, due to the cancelation of an order in the preceding period there is an over-supply of fans, therefore a limit should be placed on the total number of fans produced. (5 points each for a total of 10 points)

Question 3: If All Season decides that at least 30 air conditioners should be produced but no more than 15 fans should be produced, what would be the optimal solution? Use the Excel template provided or the corner point method.

Question 4: Round your Solution Values to a whole number and calculate the profit using the rounded solution.

Scenario 3: 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, 2200 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: (5 points each for a total of 10 points)

Bill of Labor

Product

Wiring

Assembly

Packaging

Humidifiers

2.75 hrs.

3.1 hrs.

1.1 hrs.

Air Cleaners

1.82 hrs.

3.6 hrs.

1.55 hrs.

Fans

2.1 hrs.

1.75 hrs.

1.42 hrs.

Standard Costs

Product

Material

Labor

Overhead

Selling Price

Humidifiers

17.50

7.50

26.45

$74.20

Air Cleaners

26.15

6.35

19.75

$71.80

Fans

6.55

4.75

9.55

$34.60

Question 5: 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.

Question 6: Round your Solution Values to a whole number and calculate the profit using the rounded solution.

Scenario 4: 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 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. (5 points each for a total of 10 points)

Question 7: 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.

Question 8: Round your Solution Values to a whole number and calculate the profit using the rounded solution.

Scenario 5: Using the data and constraints presented in Scenarios 3 & 4 and the fact that you were not comfortable with the calculated solution for the number of fans to produce you have added an additional constraint that a minimum of 10 fans must be produced: (5 points each for a total of 10 points)

Question 9: Formulate and solve this LP production mix situation to find the best combination of air conditioners, humidifiers and fans and that yields the greatest profit. Feel free to use the Excel template provided or the corner point method.

Question 10: Round your Solution Values to a whole number and calculate the cost using the rounded solution.

Scenario 6: The ABC Corporation management has hired a cost accountant to make some recommendations regarding the cost allocation of labor used to produce air cleaners. The average wages of personnel performing particular processes are presented in the table below.

Assembly

Wiring

Packaging

Material Handling

$12.55

$13.75

$9.75

$11.50

Additional investigation into manufacturing costs reveal that at least 18% of the man-hours must be allocated to performing material handling tasks, 40% must be allocated to wiring and assembly and 35% must be allocated to wiring and packaging. If a block of 62 man-hours is analyzed answer the following questions: (5 points each for a total of 15 points)

Question 11: Formulate and develop a LP model to find the best combination of labor hours and that yields the lowest cost. Feel free to use the Excel template provided or the corner point method.

Question 12: The prior analysis revealed a flaw in the data; the accountants ignored the constraint that a minimum of twelve (12) man-hours had to be allocated to Wiring. Formulate and develop a LP model accounting for this new constraint.

Question 13: The prior analysis revealed another flaw in the analysis; the accountants failed to identify that packaging is over allocated thus they want to add another constraint stating that packaging must be allocated a maximum of ten (10) man-hours. Formulate and develop a LP model accounting for this new constraint.

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