How to maximize the revenue obtained from selling units


Discuss the below:

Q1: A company manufactures two types of trucks: 1 and 2. each truck must go through the painting shop and assembly shop. if the painting shop were completely devoted to painting type 1 truck, 800 per day could be painted, whereas if the painting shop were completely devoted to painting type 2 trucks, 700 per day could be painted. if the assembly shop were completely devoted to assembling truck 1 engines, 1500 per day could be assembled, and if the assembly shop were completely devoted to assembling truck 2 engines, 1200 per day could be assembled. Each type 1 truck contributes 1000$ TO PROFIT; EACH TYPE 2 TRUCK CONTRIBUTES $1500.

Q2: A manufacturing company makes two products. Each product can be made on either of two machines. The time in hours required to make each product on each machine is listed.  Each month 500 hours are available on each machine. Each month, customers are willing to buy up to the quantities of each group with the prices also given in the same file. The company goal is to maximize the revenue obtained from selling units during the next two months.

a. Determine how the company can meet this goal. Assume that it will not produce any units in a monththat it can not sell in that month.

b. Use solver table to see what happens if customer demands for each product on each month simultaneoulsy change by as much as plus or minus 30% in increments of 10% from their current values. Revise the model so you can use solver table to investigate the effect of these changes on total revenue. Does revenue change on this linear manner over this range? Can you explain intuitively and why it changes in the way it does.

Attachment:- Manufacturing two products.rar

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Operation Management: How to maximize the revenue obtained from selling units
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