May 1, 2012
CASE 3.1
SubSection (a)
GIVEN
Product
1.0 Family Thrillseeker
2.0 Classy Cruiser
3.0 Total Availability
Profit
3,600
5,400

Labour Hours
6.0
10.5
48,000
Doors
20,000
Demand
3,500

KEY DECISIONS
1.0 Let the Number of Family Thrillseeker be
2.0 Let the Number of Classy Cruiser be
X
Y
OBJECTIVE FUNCTION
1.0 Maximize Z = 3600X + 5400Y
3,600
5,400
4
6
2
11
1
CONSTRAINTS
1.0
2.0
3.0
4.0
4X + 2Y 20000
6X + 10.5Y 48000
Y 3500
X 0, Y 0
20,000
48,000
3,500
12,000
10,000
8,000
6,000
4,000
2,000

2,000
4,000
6,000
1.0
8,000
2.0
10,000
12,000
3.0
Z
3.0
2.0
1
11
3,500
48,000
1,875
3,500
25,650,000
1.0
2.0
4
6
2
11
20,000
48,000
3,800
2,400
26,640,000
1.0
4.0
20,000

5,000

18,000,000
Therefore, to maximize total profit, 3800 Family Thrillseeker and 2400 Classy Cruiser should
be assembled. This will generate total profit of $26640000.
May 1, 2012
CASE 3.1
SubSection (b)
GIVEN
Product
1.0 Family Thrillseeker
2.0 Classy Cruiser
3.0 Total Availability
Profit
3,600
5,400

Labour Hours
6.0
10.5
48,000
Doors
20,000
Demand
4,200

KEY DECISIONS
1.0 Let the Number of Family Thrillseeker be
2.0 Let the Number of Classy Cruiser be
X
Y
OBJECTIVE FUNCTION
1.0 Maximize Z = 3600X + 5400Y
3,600
5,400
4
6
2
11
1
CONSTRAINTS
1.0
2.0
3.0
4.0
4X + 2Y 20000
6X + 10.5Y 48000
Y 4200
X 0, Y 0
20,000
48,000
4,200
12,000
10,000
8,000
6,000
4,000
2,000

2,000
4,000
6,000
1.0
8,000
2.0
10,000
12,000
3.0
Z
2.0
3.0
1.0
2.0
1.0
4.0
11
1
48,000
4,200
650
4,200
25,020,000
4
6
2
11
20,000
48,000
3,800
2,400
26,640,000
20,000

5,000

18,000,000
4

Therefore, to maximize total profit, 3800 Family Thrillseeker and 2400 Classy Cruiser should
be assembled and increase in demand of Classy Cruiser by 20% will not effect our decision
May 1, 2012
CASE 3.1
SubSection (c) & (d)
GIVEN
Product
1.0 Family Thrillseeker
2.0 Classy Cruiser
3.0 Total Availability
Profit
3,600
5,400

Labour Hours
6.0
10.5
60,000
Doors
20,000
Demand
3,500

KEY DECISIONS
1.0 Let the Number of Family Thrillseeker be
2.0 Let the Number of Classy Cruiser be
X
Y
OBJECTIVE FUNCTION
1.0 Maximize Z = 3600X + 5400Y
3,600
5,400
4
6
2
11
1
CONSTRAINTS
1.0
2.0
3.0
4.0
4X + 2Y 20000
6X + 10.5Y 60000
Y 3500
X 0, Y 0
20,000
60,000
3,500
12,000
10,000
8,000
6,000
4,000
2,000

2,000
4,000
6,000
1.0
8,000
2.0
10,000
12,000
3.0
Z
2.0
3.0
11
1
60,000
3,500
3,875
3,500
32,850,000
1.0
2.0
4
6
2
11
20,000
60,000
3,000
4,000
32,400,000
1.0
3.0
2
1
20,000
3,500
3,250
3,500
30,600,000
20,000

5,000

18,000,000
1.0
4.0
(c) To maximize total profit, 3250 and 3500 should be assembled. This will generate total
profit of $30600000; and (d) A total cost of $3960000 (30600000  26640000) can be the max
viable cost of Overtime.
May 1, 2012
CASE 3.1
SubSection (e) & (f)
GIVEN
Product
1.0 Family Thrillseeker
2.0 Classy Cruiser
3.0 Total Availability
Profit
3,600
5,400

Labour Hours
6.0
10.5
60,000
Doors
20,000
Demand
4,200

KEY DECISIONS
1.0 Let the Number of Family Thrillseeker be
2.0 Let the Number of Classy Cruiser be
X
Y
OBJECTIVE FUNCTION
1.0 Maximize Z = 3600X + 5400Y
3,600
5,400
4
6
2
11
1
CONSTRAINTS
1.0
2.0
3.0
4.0
4X + 2Y 20000
6X + 10.5Y 60000
Y 4200
X 0, Y 0
20,000
60,000
4,200
12,000
10,000
8,000
6,000
4,000
2,000

2,000
4,000
6,000
1.0
8,000
2.0
10,000
12,000
3.0
Z
2.0
3.0
11
1
60,000
4,200
2,650
4,200
32,220,000
1.0
2.0
4
6
2
11
20,000
60,000
3,000
4,000
32,400,000
1.0
3.0
4

2
1
20,000
4,200
2,900
4,200
33,120,000
1.0
4.0
20,000

5,000

18,000,000
4

(e) To maximize total profit, 3000 Family Thrillseeker and 4000 Classy Cruiser should be
assembled. This will generate total profit of $32400000; and (f) The incremental profit is
$5760000 whereas incremental cost of Overtime and Advertising Campaign is $2,100,000.
The idea, should therefore, be implemented
May 1, 2012
CASE 3.1
SubSection (g)
GIVEN
Product
1.0 Family Thrillseeker
2.0 Classy Cruiser
3.0 Total Availability
Profit
2,800
5,400

Labour Hours
6.0
10.5
48,000
Doors
20,000
Demand
3,500

KEY DECISIONS
1.0 Let the Number of Family Thrillseeker be
2.0 Let the Number of Classy Cruiser be
X
Y
OBJECTIVE FUNCTION
1.0 Maximize Z = 2800X + 5400Y
2,800
5,400
4
6
2
11
1
CONSTRAINTS
1.0
2.0
3.0
4.0
4X + 2Y 20000
6X + 10.5Y 48000
Y 3500
X 0, Y 0
20,000
48,000
3,500
12,000
10,000
8,000
6,000
4,000
2,000

2,000
4,000
6,000
1.0
8,000
2.0
10,000
12,000
3.0
Z
2.0
3.0
11
1
48,000
3,500
1,875
3,500
24,150,000
1.0
2.0
4
6
2
11
20,000
48,000
3,800
2,400
23,600,000
1.0
4.0
20,000

5,000

14,000,000
Therefore, to maximize total profit, 1875 Family Thrillseeker and 3500 Classy Cruiser should
be assembled. This will generate total profit of $24150000.
May 1, 2012
CASE 3.1
SubSection (h)
GIVEN
Product
1.0 Family Thrillseeker
2.0 Classy Cruiser
3.0 Total Availability
Profit
3,600
5,400

Labour Hours
7.5
10.5
48,000
Doors
20,000
Demand
3,500

KEY DECISIONS
1.0 Let the Number of Family Thrillseeker be
2.0 Let the Number of Classy Cruiser be
X
Y
OBJECTIVE FUNCTION
1.0 Maximize Z = 3600X + 5400Y
3,600
5,400
4
8
2
11
1
CONSTRAINTS
1.0
2.0
3.0
4.0
4X + 2Y 20000
7.5X + 10.5Y 48000
Y 3500
X 0, Y 0
20,000
48,000
3,500
12,000
10,000
8,000
6,000
4,000
2,000

2,000
4,000
6,000
1.0
8,000
2.0
10,000
12,000
3.0
Z
3.0
2.0
1
11
3,500
48,000
1,500
3,500
24,300,000
1.0
2.0
4
8
2
11
20,000
48,000
4,222
1,556
23,600,000
1.0
4.0
20,000

5,000

18,000,000
Therefore, to maximize total profit, 1500 Family Thrillseeker and 3500 Classy Cruiser should
be assembled. This increased labour hour will generate total profit of $24300000.
May 1, 2012
CASE 3.1
SubSection (i)
GIVEN
Product
1.0 Family Thrillseeker
2.0 Classy Cruiser
3.0 Total Availability
Profit
3,600
5,400

Labour Hours
6.0
10.5
48,000
Doors
20,000
Demand
3,500

KEY DECISIONS
1.0 Let the Number of Family Thrillseeker be
2.0 Let the Number of Classy Cruiser be
X
Y
OBJECTIVE FUNCTION
1.0 Maximize Z = 3600X + 5400Y
3,600
5,400
4
6
2
11
1
CONSTRAINTS
1.0
2.0
3.0
4.0
4X + 2Y 20000
6X + 10.5Y 48000
Y 3500
X 0, Y 0
20,000
48,000
3,500
12,000
10,000
8,000
6,000
4,000
2,000

2,000
4,000
6,000
1.0
8,000
2.0
10,000
12,000
3.0
Z
3.0
2.0
1.0
2.0
1.0
4.0
1
11
3,500
48,000
1,875
3,500
25,650,000
4
6
2
11
20,000
48,000
3,800
2,400
26,640,000
20,000

5,000

18,000,000
4

Therefore, to maximize total profit, 1875 Family Thrillseeker and 3500 Classy Cruiser should
be assembled. This will generate total profit of $25650000, i.e. decrease in profit of
$990000.
May 1, 2012
CASE 3.1
SubSection (j)
GIVEN
Product
1.0 Family Thrillseeker
2.0 Classy Cruiser
3.0 Total Availability
Profit
2,800
5,400

Labour Hours
7.5
10.5
60,000
Doors
20,000
Demand
4,200

KEY DECISIONS
1.0 Let the Number of Family Thrillseeker be
2.0 Let the Number of Classy Cruiser be
X
Y
OBJECTIVE FUNCTION
1.0 Maximize Z = 2800X + 5400Y
2,800
5,400
4
8
2
11
1
CONSTRAINTS
1.0
2.0
3.0
4.0
4X + 2Y 20000
7.5X + 10.5Y 60000
Y 4200
X 0, Y 0
20,000
60,000
4,200
12,000
10,000
8,000
6,000
4,000
2,000

2,000
4,000
6,000
1.0
8,000
2.0
10,000
12,000
3.0
Z
2.0
3.0
11
1
60,000
4,200
2,120
4,200
28,616,000
1.0
2.0
4
8
2
11
20,000
60,000
3,333
3,333
27,333,333
1.0
4.0
20,000

5,000

14,000,000
Therefore, to maximize total profit, 2120 Family Thrillseeker and 4200 Classy Cruiser should
be assembled. This will generate total profit of $28616000.