Preview

Department of Mechanical and Industrial Engineering: Operations Research

Satisfactory Essays
Open Document
Open Document
408 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Department of Mechanical and Industrial Engineering: Operations Research
NORTHEASTERN UNIVERSITY
Department of Mechanical and Industrial Engineering
Operations Research
Prof. Gupta
OR 6205
Fall 2014
Class Handout No. 1
Problem No. 1. A manufacturing firm has discontinued the production of a certain unprofitable product line. This act created considerable excess production capacity.
Management is considering devoting this excess capacity to one or more of three products; call them products 1, 2, and 3. The available capacity on the machines that might limit output is summarized in the following table:
Machine Type
Milling machine
Lathe
Grinder

Available Time (in Machine Hours per Week)
500
350
150

The number of machine hours required for each unit of the respective products is as follows: Machine Type
Milling machine
Lathe
Grinder

Product 1
9
5
3

Product 2
3
4
0

Product 3
5
0
2

The sales department indicates that the sales potential for products 1 and 2 exceeds the maximum production rate and that the sales potential for product 3 is 20 units per week.
The unit profit would be $50, $20, and $25, respectively, on products 1, 2, and 3. The objective is to determine how much of each product the firm should produce to maximize profit. Formulate a linear programming model for this problem.

Problem No. 2. A television manufacturing company has to decide on the number of 27and 20-inch sets to be produced at one of its factories. Market research indicates that at most 40 of the 27-inch sets and 10 of the 20-inch sets can be sold per month. The maximum number of work hours available is 500 per month. A 27-inch set requires 20 work hours, and a 20-inch set requires 10 work hours. Each 27-inch set sold produces a profit of $120, and each 20-inch set produces a profit of $80. A wholesaler has agreed to purchase all the television sets produced if the numbers do not exceed the maximum indicated by the market research. Formulate a linear programming model for this problem. Problem No. 3. Solve the following linear programming problem

You May Also Find These Documents Helpful

  • Satisfactory Essays

    WGU EGT1 Task 1

    • 746 Words
    • 3 Pages

    Profit maximization in terms of total revenue to total cost can be approached in two different ways. The first is to take total revenue and total cost for a time period and subtract total cost from total revenue for each unit produced to determine how many units produced would yield the highest profit. To do this in this scenario I have illustrated it in the chart below.…

    • 746 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    c. What would be the firm’s profit or loss at the following units of production sold: 12,000 units? 15,000 units? 20,000 units?…

    • 687 Words
    • 3 Pages
    Good Essays
  • Good Essays

    2-9 (Key Question) Assume that a business firm finds that its profit it greatest when it produces $40 worth of product A. Suppose also that each of the three techniques shown in the table on page 43 will produce the desired output.…

    • 673 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    used direct labor hours to allocate its overhead to products. Roller skates require 2.5 direct labor hours per unit, w…

    • 681 Words
    • 5 Pages
    Satisfactory Essays
  • Powerful Essays

    Dermaplus Analysis

    • 1521 Words
    • 7 Pages

    Total profit is calculated from subtracting the combined total fixed and variable costs from the total revenue generated. Total costs are derived from the fixed cost of $9,000 in addition to calculating the average variable cost formula provided by the regression analysis multiplied by the profit-maximizing average daily production capacity calculated at each price level.…

    • 1521 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    1. Revenue function of producing and selling x units of a product is: R(x) = 20 x −…

    • 1051 Words
    • 5 Pages
    Satisfactory Essays
  • Satisfactory Essays

    OPRE/411 Week 4

    • 379 Words
    • 2 Pages

    (b) The commitment to produce 400 pounds of Resistex has just dropped by 10%. What…

    • 379 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Scooter Case Study

    • 910 Words
    • 4 Pages

    Now that we have determined the Contribution Margin/Unit of the two products called “TEES” and “ROOS” available to produce and sell, we must determine the number of units of “TEES” and “ROOS” using the operating income of $275,000 after taxes (our Fixed Cost)…

    • 910 Words
    • 4 Pages
    Powerful Essays
  • Satisfactory Essays

    Tutorial Week 2

    • 513 Words
    • 2 Pages

    (b) Calculate the total profit shares of each of the three partners if the total partnership profit is $120 000.…

    • 513 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Sm Quiz 1

    • 1043 Words
    • 5 Pages

    | Workers are organized into 3-person teams; each team has the capability to make 5,000 pairs annually; teams are compensated at the rate of $10 per pair produced.…

    • 1043 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Rock "N" Rap

    • 597 Words
    • 3 Pages

    The company can afford to spend up to $150,000 on production next month. Also, the company will spend at least 175 hours on production.…

    • 597 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Cost and Overhead Costs

    • 282 Words
    • 2 Pages

    Youngstown has a traditional cost system. It calculates a plant-wide overhead rate by dividing total overhead costs by total direct labor hours. Assume, for the calculations below, that plant overhead is a committed (fixed) cost during the year, but that direct labor is a variable cost.…

    • 282 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Chapter 3 Costos

    • 3671 Words
    • 15 Pages

    units, and the sales mix is one unit of Product A and two units of Product B?…

    • 3671 Words
    • 15 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Mid Term Exams

    • 1230 Words
    • 5 Pages

    | Determining the production quantities of different products manufactured by a company based on resource constraints is a product mix linear programming problem. Answer…

    • 1230 Words
    • 5 Pages
    Satisfactory Essays
  • Good Essays

    operation management HW1

    • 1231 Words
    • 5 Pages

    units. The workstation produces this part at the rate of 200 units per day. What…

    • 1231 Words
    • 5 Pages
    Good Essays

Related Topics