Topic: Economic Order Quantity
Determine the Economic Order Quantity in Excel for:
Price of Product: $150
Savings Rate: 12%
Annual Usage: 16240
Cost of transportation: $200/order
Cost of PO preparation: $60/order
Warehouse Rental: $8/piece
Topic: Linear Programming
Develop problem 1 of chapter 8 using excel or by hand. You need to present the objective and constraints equations. No need to solve it.
Problem
The Waikiki Enterprise Corporation produces two types of computer satits manufacturing plant in Torrance, California. Profit on computer A is $900 per unit and for computer B it is $600. The manufacturing plant can produce not more than 50 of computer A and 100 of computer B a day. The following table displays the capacity for the manufacturing plant.
|
PLANT
|
CAPACITY TO PRODUCE COMPUTER A
|
CAPACITY TO PRODUCE COMPUTER B
|
MAXIMUM AVAILABLE CAPACITY
|
|
A Riverview Plant
|
51
|
101
|
18000
|
|
Unit profit
|
$900
|
$600
|
|
a. What are the decision variables?
b. What is the objective function?
c. What are the constraints?
d. Whatarethenon-negativityassumptions?