Formulate on spreedsheet and solve using solver: During the next two months, General Cars must meet (on time) the following dema nd for trucks and cars: month 1 – 400 trucks, 800 cars; month 2 – 300 trucks, 300 cars. During each month, at most 1000 vehicles can be produced. Each truck uses 2 tons of steel, and each car uses 1 ton of steel. During month 1, steel cost $400 per ton; during month 2, steel costs $600 per ton. At most 1500 tons of steel may be purchased at each month (steel may only be used during the month in which it is purchased). At the beginning of month 1, 100 trucks and 200 cars are in inventory. At the end of each month, a holding cost of $150 per vehicle is assessed. Each car gets 20 mpg and each truck gets 10 mpg. During each month, the vehicles produced by the company must average at least 16 mpg. Formulate an LP to meet the demand and mileage requirements at minimum cost (include steel costs and holding costs).
Formulate on spreedsheet and solve using solver: During the next two months, General Cars must meet (on time) the following dema nd for trucks and cars: month 1 – 400 trucks, 800 cars; month 2 – 300 trucks, 300 cars. During each month, at most 1000 vehicles can be produced. Each truck uses 2 tons of steel, and each car uses 1 ton of steel. During month 1, steel cost $400 per ton; during month 2, steel costs $600 per ton. At most 1500 tons of steel may be purchased at each month (steel may only be used during the month in which it is purchased). At the beginning of month 1, 100 trucks and 200 cars are in inventory. At the end of each month, a holding cost of $150 per vehicle is assessed. Each car gets 20 mpg and each truck gets 10 mpg. During each month, the vehicles produced by the company must average at least 16 mpg. Formulate an LP to meet the demand and mileage requirements at minimum cost (include steel costs and holding costs).
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Formulate on spreedsheet and solve using solver:
During the next two months, General Cars must meet (on time) the following dema nd for trucks and cars: month 1 – 400 trucks, 800 cars; month 2 – 300 trucks, 300 cars. During each month, at most 1000 vehicles can be produced. Each truck uses 2 tons of steel, and each car uses 1 ton of steel. During month 1, steel cost $400 per ton; during month 2, steel costs $600 per ton. At most 1500 tons of steel may be purchased at each month (steel may only be used during the month in which it is purchased). At the beginning of month 1, 100 trucks and 200 cars are in inventory. At the end of each month, a holding cost of $150 per vehicle is assessed. Each car gets 20 mpg and each truck gets 10 mpg. During each month, the vehicles produced by the company must average at least 16 mpg. Formulate an LP to meet the demand and mileage requirements at minimum cost (include steel costs and holding costs).
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Step 1: Define the given problem:
VIEWStep 2: Determine the objective is to minimize the cost:
VIEWStep 3: Constraint 1 Each month, the production capacity of the vehicle is 1,000 vehicles.
VIEWStep 4: Constraint 2 Each month, each truck uses 2 tons of steel and each car uses 1 ton of steel.
VIEWStep 5: Constraint 3 At the beginning of month 1, 100 trucks are in inventory.
VIEWStep 6: Constraint 4 At the beginning of month 1, 200 cars are in inventory.
VIEWStep 7: Constraint 5 At most, 1500 tons of steel can be purchased each month.
VIEWStep 8: Constraint 6 Each month, vehicle produced by company must average at least 16 mpg.
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