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By Debbie St. George: Student #: 1086941 MC506 Quantitative Methods for Managers - Start Date: July 1, 2003
Analyze the production problem at Better Fitness, Inc. and prepare a report for BFI's president presenting your findings and recommendations. Include (but donot limit your discussion to) a consideration of the following items: 1. The recommended number of BodyPlus 100 and BodyPlus 200 machines to produce.
Let BP100 BP200 Max s.t. 371BP100 = = + the number of BodyPlus 100 machines produced the number of BodyPlus 200 machines produced 461BP200
+ + +
+ ,
600 hrs of machining 450 hrs of painting and finishing time 140 hrs of assembly, testing and packaging. 0 0
70 60 50 40 30 20 10 0
Assembly, Test, and Packaging Machining and Welding BodyPlus 200 Requirement
10
20
Painting and Finishing BP100 30 40 50 60 70 80 90 100 Number of BodyPlus 100 Optimal Solution
Optimal solution: BP 100 = 50, BP 200 = 50/3 or 16.667, profit = $26,233.33. See Management Scienc
2. The effect on profits of the requirement that the number of units of the BodyPlus 200 produced must be at least 25% of the total production. If the requirement were reduced to at least 24% of total production, the new optimal solution is BP100 = 1425/28, BP200 = 225/14, with a total profit of $26,290.18; thus, total profits would increase by $56.85. In the short run the requirement reduces profits.
chines to produce.
Management Science Program - LINEAR PROGRAMMING PROBLEM MAX 371BP100+461BP200 S.T. 1) 2) 3) 4) 8BP100+12BP200<600 5BP100+10BP200<450 2BP100+2BP200<140 -0.25BP100+0.75BP200>0
OPTIMAL SOLUTION Objective Function Value = Variable -------------BP100 BP200 26233.333 or $26,233.33
Constraint -------------1 2 3 4
OBJECTIVE COEFFICIENT RANGES Variable -----------BP100 BP200 Lower Limit --------------307.333 -1113.000 Current Value Upper Limit ----------------------------371.000 No Upper Limit 461.000 556.500
RIGHT HAND SIDE RANGES Constraint -----------1 2 3 4 Lower Limit Current Value Upper Limit ------------------------------------------0.000 600.000 630.000 416.667 450.000 No Upper Limit 133.333 140.000 No Upper Limit -7.500 0.000 15.000
Notes:
Department Frame machining & welding time Frame paint & finish Press machining & welding time Press paint & finish Pec-dec machining & welding time Pec-dec paint & finish Leg press machining & welding time Leg press paint & finish Assembly, testing and packaging
Production Requirements for BP100 and BP20 Production Tim BP200 5 hrs 4 hrs 3 hrs 2 hrs 2 hrs 2 hrs 2 hrs 2 hrs 2 hrs
Department Machining & welding time Paint & finish Assembly, testing and packaging Notes & constraints for next production period
BP100 8 hrs * $20 = $160 5 hrs * $15 = $75 2 hrs * $12 = $24 15 hrs = $259
BP200 12 hrs * $20 = $240 10 hrs * $15 = $150 2 hrs * $12 = $ 24 24 hrs = $414
+ + + Suggested Price
$1,309 $1,091
Suggested Price
BP100 Frame Press Pec-dec Leg press Assembly/Pack Labor Max 371BP100 $3,500 650 400 250 200 75 414 +
$1,989 $1,511
600 hrs of machining 450 hrs of painting and finishing time 140 hrs of assembly, testing and packaging.