Chapter 29 – Test

(60 minutes)

Using Solver to determine the optimal product mix

Problem 1 (2.5 points)
A company produces three types of products (Products 1, 2, and 3) by assembling from
standardized parts labeled P1, P2, P3, P4, P5. The quantity of each part in each type of
product, the reserve quantity of each part and the unit profit of each product are given in
the following table:

Reserve Quantity of each part in each product

Parts quantity of
each part Product 1 Product 2 Product 3

P1 450 1 1 0

P2 250 1 0 0

P3 800 2 2 1

P4 450 1 1 0

P5 600 2 1 1

Unit profit (USD/Product) 75 50 35

How can the company maximize its profit? (The number of each type of products should
be produced? The maximum profit the company can gain?).

Problem 2 (2.5 points)

At a chip manufacturing plant, four technicians (A, B, C, and D) produce three products
(Products 1, 2, and 3). This month, the chip manufacturer can sell 80 units of Product 1, 50
units of Product 2, and, at most, 50 units of Product 3. Technician A can make only
Products 1 and 3. Technician B can make only Products 1 and 2. Technician C can make
only Product 3. Technician D can make only Product 2. For each unit produced, the
products contribute the following profit: Product 1, $6; Product 2, $7; and Product 3, $10.
The time (in hours) each technician needs to manufacture a product is as follows:

Product Technician A Technician B Technician C Technician D

1 2 2.5 Cannot do Cannot do

 2 Cannot do 3 Cannot do 3.5

3 3 Cannot do 4 Cannot do

Each technician can work up to 120 hours per month. How can the chip manufacturer
maximize its monthly profit? Assume a fractional number of units can be produced.

Problem 3 (2.5 points)

A computer manufacturing plant produces mice, keyboards, and video game joysticks. The
per-unit profit, per-unit labor usage, monthly demand, and per-unit machine-time usage are
given in the following table:

Mice Keyboards Joysticks

Profit/unit $8 $11 $9

Labor usage/unit .2 hour .3 hour .24 hour

Machine time/unit .04 hour .055 hour .04 hour

Monthly demand 15,000 29,000 11,000

Each month, a total of 13,000 labor hours and 3,000 hours of machine time are available.
How can the manufacturer maximize its monthly profit contribution from the plant?

Problem 4 (2.5 points)

Jason makes diamond bracelets, necklaces, and earrings. He wants to work a maximum of
160 hours per month. He has 800 ounces of diamonds. The profit, labor time, and ounces
of diamonds required to produce each product are as follows:

Ounces of
Labor hours
Product Unit profit diamonds per
per unit
unit

Bracelet $300 .35 1.2

Necklace $200 .15 .75

Earrings $100 .05 .5

If demand for each product is unlimited, how can Jason maximize his profit?
Please submit the two following files:

1 The Answer Sheet in Word format with file name is your full name and student ID (e.g. Tran
Van An – 12345678). In the Answer Sheet, you just write your answer for each problem.

2 The Excel file that presents how you can solve the problems. Each problem (together with its
solution) is presented in one separate sheet (e.g. this test has 3 problems, so your Excel file
should have 3 sheets, sheet 1 for problem 1; sheet 2 for problem 2…). The Excel file also
should be named with the above rule.