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2012-04-30 114926 Copy of Chapter 7 Assignment-2
2012-04-30 114926 Copy of Chapter 7 Assignment-2
The assembly
process for each is similar in that both require a certain amount of wiring and drilling. Each air conditioner takes 3
hours of wiring and 2 hours of drilling. Each fan must go through 2 hours of wiring and 1 hour of drilling. During the
next production period, 240 hours of wiring time are available and up to 140 hours of drilling time may be used.
Each air conditioner sold yields a profit of $25. Each fan assembled may be sold for a $15 profit. Choose the number
of air conditioners and fans to produce in order to maximize profit. Use Solver.
Table A shows each product, its profit per unit, and the amount of time it must spend in each department. Table
B shows the total production time available in each department for the month. Table C shows the minimum
monthly production requirements to fulfill the firm's contracts.
First, determine the profit-maximizing level of production for each product. Use the template in columns I:N so
that your answers will end up in the green boxes.
Second, suppose that the production manager is unsure of the accuracy of the $9 unit profit figure for XJ201. Use
a sensitivity analysis to determine the range of values that XJ201 unit profit can take without changing the results
of your analysis. Write that answer here: Range of values is $7 to $14 (see table)
TABLE A
Product XJ201 XM897 TR29 BR788
Profit Per Unit 9 12 15 11
Wiring Time 0.5 1.5 1.5 1
Drilling Time 0.3 1 2 3
Assembly Time 0.2 4 1 2
Inspection Time 0.5 1 0.5 0.5
Constraints
Result: We must produce 20650 XI201 units, 100 XM897 units, 2750 TR29 units and 400 BR788 units. Total pro
d 400 BR788 units. Total profit = 232700