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Linear Programming Problem 1 Product mix:
Canada Modern Corporation (CMC) is a large Canadian producer of modern
communication devices for microcomputers. CMC sold 9000 units of the regular
modem and 10400 units of the smart (?intelligent?) modem this September. Its
income statement for the month is shown in Table 1 on the next page. The data
are typical of prior months and are expected to remain at the same levels in the
near future. The firm is facing several constraints as it prepares its November
production plan. First, it has experienced tremendous demand and has been
unable to keep any significant inventory in stock. This situation is not expected to
change. Second, the firm is located in a small town from which additional labour
is not readily available. Workers can, however, be shifted from production of one
modem to another. To produce 9000 regular modems in September required
5000 direct labour hours. The 10400 modems absorbed 10400 direct labour
hours. Third, CMC is experiencing a problem affecting the regular modem model.
Its component supplier is available to guarantee only 8000 microprocessors for
November delivery. Each regular modem requires one of these specially made
microprocessors. Alternative suppliers are not available on short notice. CMC
wants to plan the optimal mix of the two models to produce in November to
maximize profits for CMC.
(a) Formulate, using September?s data, CMC?s problem as a linear program
(define decision variables and write out the mathematical model).
b) Explain how to solve this by intuition.
c) Other problem parameters may change, other constraints may become
relevant, etc. so it would still be a good idea to set the problem up in Excel. Do so,
and confirm your solution from part b by solving with Solver
SEPTEMBER DATA SEE BELOW
Paper#9255868 | Written in 27-Jul-2016Price : $17.85