A plant is being built to manufacture two product families A and B. The facility must produce 100,000 units of each family per year. Three technologies are available. Technology one costs $125,000 per system per year, and a system can produce 50,000 units of product A, or 25,000 units of product B. Technology two costs $65000 per year and can produce 45,000 of either product per year. A third technology exists that can only produce product B. The system could produce all 100,000 units for a cost of $180,000 per year. A. Find a good heuristic solution to the problem by first relaxing the integer restriction on purchasing processes and then rounding up the resultant acquisition variables. B. Other than expected cost, what factors should be considered?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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A plant is being built to manufacture two product
families A and B. The facility must produce
100,000 units of each family per year. Three
technologies are available. Technology one costs
$125,000 per system per year, and a system can
produce 50,000 units of product A, or 25,000
units of product B. Technology two costs
$65000 per year and can produce 45,000 of
either product per year. A third technology exists
that can only produce product B. The system
could produce all 100,000 units for a cost of
$180,000 per year.
A. Find a good heuristic solution to the problem
by first relaxing the integer restriction on
purchasing processes and then rounding up the
resultant acquisition variables.
B. Other than expected cost, what factors should
be considered?
Transcribed Image Text:A plant is being built to manufacture two product families A and B. The facility must produce 100,000 units of each family per year. Three technologies are available. Technology one costs $125,000 per system per year, and a system can produce 50,000 units of product A, or 25,000 units of product B. Technology two costs $65000 per year and can produce 45,000 of either product per year. A third technology exists that can only produce product B. The system could produce all 100,000 units for a cost of $180,000 per year. A. Find a good heuristic solution to the problem by first relaxing the integer restriction on purchasing processes and then rounding up the resultant acquisition variables. B. Other than expected cost, what factors should be considered?
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