Vollmer Manufacturing makes three components for sale to refrigeration companies. The components are processed on two machines: a shaper and a grinder. The times (in minutes) required on each machine are as follows:
|
Machine
|
|
Component
|
Shaper
|
Grinder
|
|
1
|
6
|
4
|
|
2
|
4
|
5
|
|
3
|
4
|
2
|
The shaper is available for 120 hours, and the grinder is available for 110 hours. No more than 200 units of component 3 can be sold, but up to 1000 units of each of the other components can be sold. In fact, the company already has orders for 600 units of component 1 that must be satisfied. The profit contributions for components 1, 2, and 3 are $8, $6, and $9, respective.
Formulate the linear programming problem that determines the optimal production quantities in order to maximize the profit.
Use Excel Solver to solve this problem. What is the optimal quantities of each component? What is the maximum profit?
If more time could be made available on the grinder, how much would it be worth?