A manufacturing company produces four different models of integrated circuits. Each type of circuit requires material, labor, and machine time. The optimal combination of the four types of circuits is limited by the constraints of availability for these three resources. The formulation of the linear programming production problem is:
Maximize Z = 12x1 + 10x2 + 15x3 + 11x4 (objective function for profit)
Subject to the following constraints:
| Material: | 5x1 + 3x2 + 4x3 + 2x4 = 240 pounds |
| Machine time: | 6x1 + 8x2 + 2x3 + 3x4 = 240 hours |
| Labor: | 2x1 + 3x2 + 3x3 + 2x4 = 180 hours |
Nonnegativity: x1, x2, x3, x4 = 0
Where: x1 = quantity of Product 1 produced
x2 = quantity of Product 2 produced
x3 = quantity of Product 3 produced
x4 = quantity of Product 4 produced
Use Microsoft Excel and Solver to find the optimal solution for the production problem. Be sure that values selected by the computer are integers (as it doesn’t make any sense to discuss producing part of a unit of a product).
Include your interpretation of the results by stating:
Submit the solution for the production problem in a Microsoft Excel worksheet with proper labeling for columns and all required calculations. Submit your interpretations in a 1- to 2-page Microsoft Word document.
Support your responses with examples.
Cite any sources in APA format.
Submission Details
Name your documents SU_MGT4059_W3_A2_LastName_FirstInitial.docx and SU_MGT4059_W3_A2_LastName_FirstInitial.xlsx.
Submit your documents to the W3 Assignment 2 Dropbox by Tuesday, November 26, 2013.
| Assignment 2 Grading Criteria |
Maximum Points |
| Correctly implemented this problem in Microsoft Excel using the Solver add-in. |
60 |
| Determined how many units of each product would be produced. |
45 |
| Determined the profit for the optimal allocation of resources. |
35 |
| Discussed the resource(s) that is limiting the system from producing even more units of product (and, thereby, earning more profit). |
50 |
| Written components. |
10 |
| Total: |
200 |
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