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Rahil Mehdi Hemani

May 1, 2012

CASE 3.1
Sub-Section (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.

Rahil Mehdi Hemani

May 1, 2012

CASE 3.1
Sub-Section (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

Rahil Mehdi Hemani

May 1, 2012

CASE 3.1
Sub-Section (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.

Rahil Mehdi Hemani

May 1, 2012

CASE 3.1
Sub-Section (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

Rahil Mehdi Hemani

May 1, 2012

CASE 3.1
Sub-Section (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.

Rahil Mehdi Hemani

May 1, 2012

CASE 3.1
Sub-Section (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.

Rahil Mehdi Hemani

May 1, 2012

CASE 3.1
Sub-Section (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.

Rahil Mehdi Hemani

May 1, 2012

CASE 3.1
Sub-Section (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.