Acme Manufacturing makes a variety of household appliances at a single manufacturing facility. Theexpected demand for one of these appliances during the next four months is shown in the following tablealong with the expected production costs and the expected capacity for producing these items.
Month 1 2 3 4
Demand 420 580 310 540
Production Cost $49.00 $45.00 $46.00 $47.00
Production Capacity 500 520 450 550
Acme estimates it costs $1.50 per month for each unit of this appliance carried in inventory (estimated byaveraging the beginning and ending inventory levels each month). Currently, Acme has 120 units ininventory on hand for this product. To maintain a level workforce, the company wants to produce at least 400units per month. They also want to maintain a safety stock of at least 50 units per month. Acme wants todetermine how many of each appliance to manufacture during each of next four months to meet the expecteddemand at the lowest possible total cost.
1. Formulate a Linear Programming model for this problem
2. Create a spreadsheet model for this problem and solve it using Solver
3. What is the optimal solution?
4. How much money could Acme save if they were willing to drop the restriction about producing atleast 400 units per month?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more