Lakeside boatworks n planning to manufacture three types of

Question

Lakeside Boatworks n planning to manufacture three types of molded fiberglass recreational boats-a fishing (bass) boat, a ski boat, and a small speedboat. The estimated selling price and variable cost for each type of boat are summarized in the following table:

Boat	Variable Cost	Selling Price
Bass	$12,500	$23,000
Ski	8,500	18,000
Speed	13,700	26,000

The company has incurred fixed costs $2,800,000 to set up its manufacturing operation and begin production. Lakeside has also entered into agreements with several boat deriders in the region to provide a minimum of 70 bass boats, 50 ski boats, and 50 speedboats.

Alternatively, the company is unsure of what actual demand will be, so it has decided to limit production to no more than 120 of any one boat. The company wants to determine the number of boats that it must sell to break even while min mono its total variable cost.

a. Formulate a linear programming model for this problem.

b. Solve the model by using the computer.

Answer 1

By using the selling price and variable cost for each and every kind of boat given in the assignment, solve the following case scenario and provide the results. Lakeside Boat works plan to produce three kinds of molded fiberglass recreational boats-a fishing boat, a ski boat and a small speed-boat. The company has acquired fixed costs $2,800,000 to set up its manufacturing operation and start production. Lakeside has as well entered to agreements having some boat deriders in the area to give a minimum of 70 bass boats, 50 ski boats and 50 speed-boats. On the other hand, the company is uncertain of what actual demand will be, thus it has decided to limit the production to no more than 120 of any one boat. The company wishes to find out the number of boats which it should sell to break even while min mono its net variable cost. 1) Devise a linear programming model for problem. 2) Resolve the model by utilizing computer.