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Chirality Company must produce at least 600,000 small screws and 400,000 large s

ID: 390616 • Letter: C

Question

Chirality Company must produce at least 600,000 small screws and 400,000 large screws to meet the demands for the next 4 weeks. These screws can be produced on two different machines, which are each available for 60 hours per week. The costs and time requirements for producing each size screw on each machine and the selling price of each size screw are given in the following table:

Small Screws

Large Screws

Selling price ($/1000)

Cost on Machine 1 ($/1000)

Cost on Machine 2 ($/1000)

Time on Machine 1 (min/lb)

Time on Machine 2 (min/lb)

There are about 60 small screws in each pound and 40 large screws in each pound. Using the variables

The Production Manager has formulated the following model to maximize the profit and meet the demand with the limited availability of machine time in the next four weeks:

            Maximize 27.50S1 + 27.50S2 + 32.50L1 + 32.50L2

            Subject to

                                    S1 + S2 600,000

                                    L1 + L2 400,000

                        1.5S1 + 1.75L1 60

                        1.0S1 + 1.25L2 60

                        S1, S2, L1, L2 0

Is this model correct? If not, identify and correct all mistakes.

Small Screws

Large Screws

Selling price ($/1000)

27.50 32.50

Cost on Machine 1 ($/1000)

6.25 7.75

Cost on Machine 2 ($/1000)

8.00 9.25

Time on Machine 1 (min/lb)

1.50 1.75

Time on Machine 2 (min/lb)

1.00 1.25

Explanation / Answer

Profit per small screw produced on machine 1 (S1)= (27.5-6.25)/1000 = 21.25/1000 = 0.02125

Profit per large screw produced on machine 1 (L1) = (32.50-7.75)/1000 = 0.02475

Profit per small screw produced on machine2 (S2) -0.0195

Profir per large screw on machine 2 (L2) - 0.02325

Objective function

Max (0.02125 S1+ 0.02475L1 + 0.0195S2+0.02325L2)

subject to

S1+S2 =>600000

L1+L2=>400000

1.50/60 S1 +1.75/40 L1 <=3600

1/60S2+1.25/40L2 <= 3600

S1, S2, L1,L2 =>0

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