Omega Manufacturing makes three products. Each product requires manufacturing oper- ations in three departments: A, B, and C. The labor-hour requirements, by department, are as follows: TABLE 1: Department Product 1 Product 2 Product 3 A 0.25 1.00 0.50 B 2.50 2.00 1.00 C 2.00 1.50 3.00 During the next production period, the labor-hours available are 72 in department A, 370 in department B, and 450 in department C. The variable cost of producing each product, sales price of each product, and the fixed setup cost of a production run for each product is given in Table 2. TABLE 2: Product 1 Product 2 Product 3 Variable Cost (per unit) $13.50 $12.30 $11.30 Setup Cost $610 $420 $530 Sales Price (per unit) $31 $25 $28 a) Formulate an Integer Programming model to maximize the profit. b) Solve the problem by using Excel Solver. Show the optimal solution and optimal value in your printouts.
Omega Manufacturing makes three products. Each product requires manufacturing oper-
ations in three departments: A, B, and C. The labor-hour requirements, by department,
are as follows:
TABLE 1:
Department Product 1 Product 2 Product 3
A 0.25 1.00 0.50
B 2.50 2.00 1.00
C 2.00 1.50 3.00
During the next production period, the labor-hours available are 72 in department A, 370
in department B, and 450 in department C.
The variable cost of producing each product, sales price of each product, and the fixed
setup cost of a production run for each product is given in Table 2.
TABLE 2:
Product 1 Product 2 Product 3
Variable Cost (per unit) $13.50 $12.30 $11.30
Setup Cost $610 $420 $530
Sales Price (per unit) $31 $25 $28
a) Formulate an Integer Programming model to maximize the profit.
b) Solve the problem by using Excel Solver. Show the optimal solution and optimal value in your printouts.
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