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# Prof.

## Turner Mgmt Sci 101

Practice 1 Problems 1. The Electrotech Corporation manufactures two industrial-sized electrical devices: generators and alternators. Both of these products require wiring and testing during the assembly process. Each generator requires wiring and testing during the assembly process. Each generator requires 2 hours of wiring and 1 hours of testing and can be sold for a \$250 profit. Each alternator requires 3 hours of wiring and 2 hours of testing and can be sold for a \$150 profit. There are 260 hours of wiring and 140 hours of testing time available in the next production period and Electrotech wants to maximize profit. a. Formulate an LP model for this problem. X1 = # of generators produced X2 = # of alternators produced Maximize Profits: 250X1 + 150X2 2X1 + 3X2 <= 260 (total wiring hours) X1 + 2X2 <= 140 (total testing hours) X1, X2 >= 0 (non-negativity) b. Sketch the feasible region for this problem.

The orange dot indicates the optimal solution. c. Determine the optimal solution to this problem using level curves. What is the optimal value? The optimal solution is the point (130 Generators, 0 Alternators), which is represented by the orange dot. The optimal value is \$32500.

## Prof. Turner Mgmt Sci 101

2. The Sentry Lock Corporation manufacturers a popular commercial security lock at plants in Macon, Louisville, Detroit and Phoenix. The per unit cost of production at each plant is \$35.50, \$37.50, \$39.00, and \$36.25, respectively, and the annual production capacity at each plant is 18,000, 15,000, 25,000, and 20,000, respectively. Sentrys locks are sold to retailers through wholesale distributors in seven cities across the United States. The unit cost of shipping from each plant to each distributor is summarized in the following table along with the forecasted demand from each distributor for the coming year.
Tacoma \$2.50 \$1.85 \$2.30 \$1.90 8,500 San Diego \$2.75 \$1.90 \$2.25 \$0.90 14,500 Unit Shipping Cost to Distributor in Dallas Denver St. Louis \$1.75 \$2.00 \$2.10 \$1.50 \$1.60 \$1.00 \$1.85 \$1.25 \$1.50 \$1.60 \$1.75 \$2.00 13,500 12,600 18,000 Tampa \$1.80 \$1.90 \$2.25 \$2.50 15,000 Baltimore \$1.65 \$1.85 \$2.00 \$2.65 9,000

## Macon Louisville Detroit Phoenix Demand

Sentry wants to determine the least expensive way of manufacturing and shipping locks from their plants to the distributor. Because the total demand from distributors exceeds the total production capacity of all plants, Sentry realized it will not be able to satisfy all the demand for its product, but wants to make sure each distributor will have the opportunity to fill at least 80% of the orders they receive. a. Create a spreadsheet model for this problem and solve it. See Excel spreadsheet.

b. What is the optimal solution? What is the optimal value? The optimal solution is: (Ship 6800 to Tacoma, 14200 to San Diego, 10800 to Dallas, 12600 Denver, 14400 to St. Louis, 12000 to Tampa, and 7200 to Baltimore). The optimal value is \$3,011,360.