Formulate the problem as LPM, solve the problem using Excel solver and provide a management report.
Case Problem 2 WORKLOAD BALANCING
Digital Imaging (DI) produces photo printers for both the professional and consumer markets. The DI consumer division recently introduced two photo printers that provide color prints rivaling those produced by a professional processing lab. The DI-910 model can produce a 4" _ 6" borderless print in approximately 37 seconds. The more sophisticated and faster DI-950 can even produce a 13" _ 19" borderless print. Financial projections show profit contributions of $42 for each DI-910 and $87 for each DI-950. The printers are assembled, tested, and packaged at DI’s plant located in New Bern, North Carolina. This plant is highly automated and uses two manufacturing lines to produce the printers. Line 1 performs the assembly operation with times of 3 minutes per DI 910 printer and 6 minutes per DI-950 printer. Line 2 performs both the testing and packaging operations. Times are 4 minutes per DI-910 printer and 2 minutes per DI-950 printer. The shorter time for the DI-950 printer is a result of its faster print speed. Both manufacturing lines are in operation one 8-hour shift per day.
Managerial Report
Perform an analysis for Digital Imaging in order to determine how many units of each printer to produce. Prepare a report to DI’s president presenting your findings and recommendations. Include (but do not limit your discussion to) a consideration of the following:
1. The recommended number of units of each printer to produce to maximize the total contribution to profit for an 8-hour shift. What reasons might management have for not implementing your recommendation?
2. Suppose that management also states that the number of DI-910 printers produced must be at least as great as the number of DI-950 units produced. Assuming that the objective is to maximize the total