Linear Programming Develop problem

Wk 5

Topic: Economic Order Quantity Determine the Economic Order Quantity in Excel for: Price of Product: $150 Savings Rate: 12% Annual Usage: 16240 Cost of transportation: $200/order Cost of PO preparation: $60/order Warehouse Rental: $8/piece Topic: Linear Programming Develop problem 1 of chapter 8 using excel or by hand. You need to present the objective and constraints equations. No need to solve it.

Problem 1

The Waikiki Enterprise Corporation produces two types of computers at its manufacturing plant in Torrance, California. Profit on computer A is $900 per unit and for computer B it is $600. The manufacturing plant can produce not more than 50 of computer A and 100 of computer B a day. The following table displays the capacity for the manufacturing plant.

PLANT CAPACITY TO PRODUCE COMPUTER A CAPACITY TO PRODUCE COMPUTER B MAXIMUM AVAILABLE CAPACITY
A River view Plant 51 101 18000
Unit profit $900 $600

a. What are the decision variables?

b. What is the objective function?

c. What are the constraints?

d. What are the non-negativity assumptions?

Wk 5

Topic:

Economic

Order

Quantity

Determine the Economic Order Quantity in Excel for:

Price of Product:

$150

Savings Rate: 12%

Annual Usage: 16240

Cost of transportation: $200/order

Cost of PO preparation: $60/order

Warehouse Rental: $8/piece

Topic:

Linear

Programming

Develop problem 1 of chapter 8 using excel or by hand. You need to present the objective

a

nd

constraints equations. No need to solve it.

Problem 1

The

Waikiki

Enterprise

Corporation

produces

two

types

of

computers

at

its

manufacturing

plant in Torrance, California. Profit on computer A is $900 per unit and for computer B it is

$600. The

manufacturing plant can produce not more than 50 of computer A and 100 of

computer B a day. The following table displays the capacity for the manufacturing plant.

PLANT

CAPACITY TO

PRODUCE

COMPUTER A

CAPACITY TO

PRODUCE

COMPUTER B

MAXIMUM

AVAILABLE

CAPACITY

A Riverview Plant

51

101

18000

Unit profit

$900

$600

a. What are the decision variables?

b. What is the objective function?

c. What are the constraints?

d. What

are

the

non

negativity

assumptions?

Wk 5

Topic: Economic Order Quantity

Determine the Economic Order Quantity in Excel for:

Price of Product: $150

Savings Rate: 12%

Annual Usage: 16240

Cost of transportation: $200/order

Cost of PO preparation: $60/order

Warehouse Rental: $8/piece

Topic: Linear Programming

Develop problem 1 of chapter 8 using excel or by hand. You need to present the objective and

constraints equations. No need to solve it.

Problem 1

The Waikiki Enterprise Corporation produces two types of computers at its manufacturing

plant in Torrance, California. Profit on computer A is $900 per unit and for computer B it is

$600. The manufacturing plant can produce not more than 50 of computer A and 100 of

computer B a day. The following table displays the capacity for the manufacturing plant.

PLANT

CAPACITY TO

PRODUCE

COMPUTER A

CAPACITY TO

PRODUCE

COMPUTER B

MAXIMUM

AVAILABLE

CAPACITY

A Riverview Plant 51 101 18000

Unit profit $900 $600

a. What are the decision variables?

b. What is the objective function?

c. What are the constraints?

d. What are the non-negativity assumptions?

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