Make or Buy . A sudden increase in the demand for smoke detectors has left Acme
ID: 471334 • Letter: M
Question
Make or Buy. A sudden increase in the demand for smoke detectors has left Acme Alarms with insufficient capacity to meet demand. The company has seen monthly demand from its retailers for its electronic and battery-operated detectors rise to 20,000 and 10,000 respectively. Acme’s production process involves three departments: fabrication, assembly, and shipping. The relevant quantitative data on production and prices are summarized as follows:
Monthly Hours Available
Hours/Unit
(Electronic)
Hours/Unit (Battery)
Fabrication
2,000
0.15
0.10
Assembly
4,200
0.20
0.20
Shipping
2,500
0.10
0.15
Determine the optimal leasing schedule. What is the optimal total cost and the corresponding schedule?
Monthly Hours Available
Hours/Unit
(Electronic)
Hours/Unit (Battery)
Fabrication
2,000
0.15
0.10
Assembly
4,200
0.20
0.20
Shipping
2,500
0.10
0.15
Explanation / Answer
let the numer of electronic detectors produced be "x" and battery detectors be "y"
so, x=20,000 and y=10,000 (demand)
subject to constraints:
0.15x+0.10y<=2,000 (fabrication)
0.20x+0.20y<=4200 (assembly)
0.10x+0.15y<=2500 (shipping)
Solving the linear program using solver in excel, we get the following solution:
shipping
Thus given the constraints of monthly hours, 6,666.67 units of electronic and 10,000 units of battery detectors can be produced.
optimal cost cannot be determined as no cost details are given.
Electronic Battery 6666.66667 10000 (no. of units) 2000 fabrication 3333.33333 assembly 2166.66667shipping
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.