Merton Truck
[pic]
Operations Research Assignment
(Section B)
Free Abbey Wineryy
Submitted to: Prof. Saji Gopinath, IIM, Kozhikode
Submitted on: 12th Jun. 2013
Submitted by: Manoj K. Nair, EPGP-05-130
Merton Truck Company
Top Management of Merton Truck Company is planning to revisit the current product mix of the company involving two models of trucks M101 and M102 as the President of the company feels that M101 truck is not contributing to company’s profit. She also feels that purchasing engines from an outside supplier may be a good option as it eases the capacity problem in the engine assembly department.
Manufacturing of the trucks are carried out in a three stage process involving engine assembly, metal stamping and model assembly. The first two activities are common for both the models while model assemblies are carried out in two separate departments, one for each model. Data on machine hour requirements for each truck model in each department and monthly machine hour availability in the departments are given in Table 1 below. Assume there are no demand constraints for sale of trucks.
Table 1 Machine hour requirements and availability
|Department |Machine hours required per truck |Total machine hours |
| | |available per month |
| |Model 101 |Model 102 | |
|Engine Assembly |1.0 |2.0 |4000 |
|Metal Stamping |2.0 |2.0 |6000 |
|Model 101 assembly |2.0 |--- |5000 |
|Model 102 assembly
Operations Research Assignment
(Section B)
Free Abbey Wineryy
Submitted to: Prof. Saji Gopinath, IIM, Kozhikode
Submitted on: 12th Jun. 2013
Submitted by: Manoj K. Nair, EPGP-05-130
Merton Truck Company
Top Management of Merton Truck Company is planning to revisit the current product mix of the company involving two models of trucks M101 and M102 as the President of the company feels that M101 truck is not contributing to company’s profit. She also feels that purchasing engines from an outside supplier may be a good option as it eases the capacity problem in the engine assembly department.
Manufacturing of the trucks are carried out in a three stage process involving engine assembly, metal stamping and model assembly. The first two activities are common for both the models while model assemblies are carried out in two separate departments, one for each model. Data on machine hour requirements for each truck model in each department and monthly machine hour availability in the departments are given in Table 1 below. Assume there are no demand constraints for sale of trucks.
Table 1 Machine hour requirements and availability
|Department |Machine hours required per truck |Total machine hours |
| | |available per month |
| |Model 101 |Model 102 | |
|Engine Assembly |1.0 |2.0 |4000 |
|Metal Stamping |2.0 |2.0 |6000 |
|Model 101 assembly |2.0 |--- |5000 |
|Model 102 assembly