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LP01 Embassy Motorcycles

The group computed the optimal production levels to maximize profit for two motorcycle models. According to the calculations, Embassy Motorcycles should produce 250 units of EZ-Rider models and 200 units of Lady-Sport models to achieve the largest profit of $960,000.

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Sean Wong
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0% found this document useful (0 votes)
60 views4 pages

LP01 Embassy Motorcycles

The group computed the optimal production levels to maximize profit for two motorcycle models. According to the calculations, Embassy Motorcycles should produce 250 units of EZ-Rider models and 200 units of Lady-Sport models to achieve the largest profit of $960,000.

Uploaded by

Sean Wong
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Name: Group ?

________________ Section: A-336____ Date: 07/25/22____

Exercise #1

Embassy Motorcycles (EM) manufactures two lightweight motorcycles


designed for easy handling and safety. The EZ-Rider model has a new
engine and a low profile that make it easy to balance. The Lady-Sport
model is slightly larger, uses a more traditional engine, and is specifically
designed to appeal to women riders. Embassy produces the engines for
both models at its Des Moines, Iowa, plant. Each EZ-Rider engine requires
6 hours of manufacturing time and each Lady-Sport engine requires 3
hours of manufacturing time. The Des Moines plant has 2100 hours of
engine manufacturing time available for the next production period.
Embassy’s motorcycle frame supplier can supply as many EZ-Rider frames
as needed. However, the Lady-Sport frames is more complex and supplier
can only provide up to 280 Lady-Sport frame for the next production period.
Final assembly and testing requires 2 hours for each EZ-Rider model and
2.5 hours for each Lady-Sport model. A maximum of 1000 hours of
assembly and testing time are available for the next period. The company’s
accounting department projects as profit contribution of $2400 for each EZ-
Rider produced and $1800 for each Lady-Sport produced.
Required:

a. Formulate a linear programming model that can be used to determine the number of
units of each model that should be produced in order to maximize the total contribution
to profit.
b. Solve the problem graphically. What is the optimal solution?
c. Which constraints are binding?

Note: Use the format given below in solving the problem:

1. Formulate the Objective Function: Zj = 2,400E + 1,800L

2. s.t.the following constraints:

Constraint 1 ____________________________________ 6E + 3L <= 2,100


Constraint 2 ____________________________________ 2E + 2.5L <= 1,000
Constraint 3 ____________________________________ L <= 280
(non-negativity) _________________________________ E,L >= 0
3. Graph (Draw the graph)

4. Extreme points and profit

Extreme points Coordinates Objective function: Profit

A (0,280) 2,400(0) + 1,800 (280) 504,000


B (150,280) 2,400(150) + 1,800(280) 864,000
C (250,200) 2,400(250) + 1,800(200) 960,000
D (350,0) 2,400(350) + 1,800(0) 840,000

DECISION: = __250 EZ-Rider_units. = ___200 Lady-Sport_units

In no more than 5 sentences, explain what you have just computed.


The group have computed the number of units of each model that should be produced in order
to maximize the total contribution to profit. According to the calculation, Embassy Motorcycles
should produce 250 units of EZ-Rider models and 200 units of Lady-Sport models for them to
acquire the largest profit available; which is $960,000.

Attached all manual solutions here.

Line 1:

6E + 3L = 2,100 6E + 3L = 2,100

6(0) + 3L = 2,100 6E + 3(0) = 2,100

3L = 2,100 6E = 2,100

L = 700 E = 350

(0,700) (350,0)

Line 2:

2E + 2.5L = 1,000 2E + 2.5L = 1,000

2(0) + 2.5L = 1,000 2E + 2.5(0) = 1,000

2.5L = 1,000 2E = 1,000

L = 400 E = 500

(0,400) (500,0)

Line 3:

L = 280 E=0

(0,280) (0,0)

Solving the intersection between the first and second equation using the elimination
method:
6E + 3L = 2,100 6E + 3(200) = 2,100

3(2E + 2.5L = 1,000) 6E + 600 = 2,100

6E + 3L = 2,100 6E = 2,100 - 600

(6E +7.5L = 3,000) 6E = 1,500

-4.5L = 900 E = 250

L = 200

Units: (250,200)

Solving the intersection between the second and third equation using the elimination
method:

2E + 2.5L = 1,000 2(150) + 2.5L = 1,000

L = 280 2.5L = 1,000 - 300

2E + 2.5(280) = 1,000 2,5L = 700

2E = 1,000 - 700 L = 280

2E = 300

E = 150

Units: (150,280)

-End of exercise-

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