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Louisiana Forgeworks manufactures custom steel and aluminum parts using several hot forges. (Hot forging is a manufacturing process involving the shaping of metal under high heat using compressive forces.) Four of these forges use natural gas (NG1, NG2, NG3, and NG4) and two are coal-fired (CF1 and CF2). Louisiana Forgeworks has received an order for 2800 aluminum connecting rods. The table below summarizes the manufacturing costs associated with producing these rods on each forge along with the available capacity on each forge. The fixed cost is a setup cost associated with firing up each forge, and is incurred once only if any rods are produced on that forge; the variable cost is incurred for each rod produced on the forge. NG1 CF1 Forge Fixed Cost NG2 NG3 NG4 CF2 $710 $31 $885 $30 $930 $28 $810 $860 $980 $26 Variable Cost $25 $29 Capacity 1200 1000 900 1050 800 1200 There are two additional restrictions. First, there is only enough natural gas remaining to produce 1800 rods in total across the four natural gas forges. Additional natural gas can be purchased, but this extra gas costs $5 for each rod produced beyond the 1800 across these four forges (effectively adding $5 to the variable cost). Second, because of pollution concerns, at most one of the coal-fired forges (CF1 and CF2) can be operated during the production period. Which forges should be operated and how many connecting rods should be produced on each forge so as to minimize the total cost of meeting this order? Set up a linear programming spreadsheet model (with binary variables if and only if necessary), and solve it using Solver.

Louisiana Forgeworks manufactures custom steel and aluminum parts using several hot forges. (Hot forging is a manufacturing process involving the shaping of metal under high heat using compressive forces.) Four of these forges use natural gas (NG1, NG2, NG3, and NG4) and two are coal-fired (CF1 and CF2). Louisiana Forgeworks has received an order for 2800 aluminum connecting rods. The table below summarizes the manufacturing costs associated with producing these rods on each forge along with the available capacity on each forge. The fixed cost is a setup cost associated with firing up each forge, and is incurred once only if any rods are produced on that forge; the variable cost is incurred for each rod produced on the forge. NG1 CF1 Forge Fixed Cost NG2 NG3 NG4 CF2 $710 $31 $885 $30 $930 $28 $810 $860 $980 $26 Variable Cost $25 $29 Capacity 1200 1000 900 1050 800 1200 There are two additional restrictions. First, there is only enough natural gas remaining to produce 1800 rods in total across the four natural gas forges. Additional natural gas can be purchased, but this extra gas costs $5 for each rod produced beyond the 1800 across these four forges (effectively adding $5 to the variable cost). Second, because of pollution concerns, at most one of the coal-fired forges (CF1 and CF2) can be operated during the production period. Which forges should be operated and how many connecting rods should be produced on each forge so as to minimize the total cost of meeting this order? Set up a linear programming spreadsheet model (with binary variables if and only if necessary), and solve it using Solver.

Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
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Louisiana Forgeworks manufactures custom steel and aluminum parts using several hot forges. (Hot forging is a manufacturing process involving the shaping of metal under high heat using compressive forces.) Four of these forges use natural gas (NG1, NG2, NG3, and NG4) and two are coal-fired (CF1 and CF2). Louisiana Forgeworks has received an order for 2800 aluminum connecting rods. The table below summarizes the manufacturing costs associated with producing these rods on each forge along with the available capacity on each forge. The fixed cost is a setup cost associated with firing up each forge, and is incurred once only if any rods are produced on that forge; the variable cost is incurred for each rod produced on the forge. NG1 NG2 NG3 NG4 CF1 CF2 Forge Fixed Cost $810 $25 $710 $31 $860 $29 $885 $30 $980 $26 $930 $28 Variable Cost Сараcity 1200 1000 900 1050 800 1200 There are two additional restrictions. First, there is only enough natural gas remaining to produce 1800 rods in total across the four natural gas forges. Additional natural gas can be purchased, but this extra gas costs $5 for each rod produced beyond the 1800 across these four forges (effectively adding $5 to the variable cost). Second, because of pollution concerns, at most one of the coal-fired forges (CF1 and CF2) can be operated during the production period. Which forges should be operated and how many connecting rods should be produced on each forge so as to minimize the total cost of meeting this order? Set up a linear programming spreadsheet model (with binary variables if and only if necessary), and solve it using Solver.
Transcribed Image Text:Louisiana Forgeworks manufactures custom steel and aluminum parts using several hot forges. (Hot forging is a manufacturing process involving the shaping of metal under high heat using compressive forces.) Four of these forges use natural gas (NG1, NG2, NG3, and NG4) and two are coal-fired (CF1 and CF2). Louisiana Forgeworks has received an order for 2800 aluminum connecting rods. The table below summarizes the manufacturing costs associated with producing these rods on each forge along with the available capacity on each forge. The fixed cost is a setup cost associated with firing up each forge, and is incurred once only if any rods are produced on that forge; the variable cost is incurred for each rod produced on the forge. NG1 NG2 NG3 NG4 CF1 CF2 Forge Fixed Cost $810 $25 $710 $31 $860 $29 $885 $30 $980 $26 $930 $28 Variable Cost Сараcity 1200 1000 900 1050 800 1200 There are two additional restrictions. First, there is only enough natural gas remaining to produce 1800 rods in total across the four natural gas forges. Additional natural gas can be purchased, but this extra gas costs $5 for each rod produced beyond the 1800 across these four forges (effectively adding $5 to the variable cost). Second, because of pollution concerns, at most one of the coal-fired forges (CF1 and CF2) can be operated during the production period. Which forges should be operated and how many connecting rods should be produced on each forge so as to minimize the total cost of meeting this order? Set up a linear programming spreadsheet model (with binary variables if and only if necessary), and solve it using Solver.
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