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:
Printer | Variable | Profit | Line 1 Assembly (mins) | Line 2 Packaging (mins) | mins available per day | D1-910 | "X91" | $42 | 3 | 4 | 480 | D1-950 | "X95" | $87 | 6 | 2 | 480 |
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?
To maximize profit with the time constraints on each line, management should only produce D1-950 printers as this model has the higher profit contribution. This strategy would involve creating 80 D1-950 printers for a total profit of $6,960. However, implementing this strategy would create 320 minutes of dead time on line 2, leading to unutilized equipment and loitering employees.
Decision Variables | | | | | | D1-910 | X91 | 0 | | | D1-950 | X95 | 80 | | | | | | | Objective Function | | | | | | max | (42*x91)+(87*x95) | 6960 | | | | | | | Constraints | | | | | Line 1 Time | 3*x91+6*x95 | <= | 480 | 480 | Line 2 Time | 4*x91+2*x95 | <= | 480 | 160 |
2. Suppose that management also states that the number of DI-91O 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 contribution to profit for an 8-hour shift, how many units of each printer should be produced?
With the added constraint, production of D1-950s will decrease from 80 to 53, while D1-910s will increase from 0 to 54. The actual solver created a non-viable decimal solution, but to meet reality and constraints, the solver solution had to be adjusted slightly