Problem 7. An automobile manufacturer wants to award contracts for the supply of four different fuel injection system components. Three contractors have submitted bids on the components; the table below summarizes the prices bid per unit. Where no entry is made, the contractor submitted no bid. The demand for a component does not have to be supplied completely by one contractor. In fact, certain contractors have indicated maximum quantities which can be supplied at the bid price. Contractor 1 can supply no more than 4,000 of item 3, contractor 2 no more than 1,000 of item 3, and contractor 3 no more than 15,000 units of item 2. There is no provision that awards must go to the low bidder. The automobile manufacturer wants to determine how many units of each item should be awarded to each contractor to minimize total costs for the four items. Contractor 1 has specified that it requires a minimum award of $200,000 if it is to supply any items at all. The automobile manufacturer wishes to avoid awarding over $1 million in awards to any one company. Formulate the LP model which can be used to solve this problem. Let: Xij- the number of units awarded to contractor i for item j. Contracto Demand (units) 2 3 $20 15 10,000 Component 2 $60 75 50 20,000 3 $40 45 50 6,000 $30 25 25,000
Problem 7. An automobile manufacturer wants to award contracts for the supply of four different fuel injection system components. Three contractors have submitted bids on the components; the table below summarizes the prices bid per unit. Where no entry is made, the contractor submitted no bid. The demand for a component does not have to be supplied completely by one contractor. In fact, certain contractors have indicated maximum quantities which can be supplied at the bid price. Contractor 1 can supply no more than 4,000 of item 3, contractor 2 no more than 1,000 of item 3, and contractor 3 no more than 15,000 units of item 2. There is no provision that awards must go to the low bidder. The automobile manufacturer wants to determine how many units of each item should be awarded to each contractor to minimize total costs for the four items. Contractor 1 has specified that it requires a minimum award of $200,000 if it is to supply any items at all. The automobile manufacturer wishes to avoid awarding over $1 million in awards to any one company. Formulate the LP model which can be used to solve this problem. Let: Xij- the number of units awarded to contractor i for item j. Contracto Demand (units) 2 3 $20 15 10,000 Component 2 $60 75 50 20,000 3 $40 45 50 6,000 $30 25 25,000
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:Problem 7. An automobile manufacturer wants to award contracts for the supply of four different fuel injection system components. Three
contractors have submitted bids on the components; the table below summarizes the prices bid per unit. Where no entry is made, the
contractor submitted no bid.
The demand for a component does not have to be supplied completely by one contractor. In fact, certain contractors have indicated
maximum quantities which can be supplied at the bid price. Contractor 1 can supply no more than 4,000 of item 3, contractor 2 no more
than 1,000 of item 3, and contractor 3 no more than 15,000 units of item 2. There is no provision that awards must go to the low bidder.
The automobile manufacturer wants to determine how many units of each item should be awarded to each contractor to minimize total
costs for the four items. Contractor 1 has specified that it requires a minimum award of $200,000 if it is to supply any items at all. The
automobile manufacturer wishes to avoid awarding over $1 million in awards to any one company. Formulate the LP model which can be
used to solve this problem.
Let: Xij = the number of units awarded to contractor i for item j.
Contracto
Demand
(units)
1
2
3
$20
15
10,000
Component
2
$60
75
50
20,000
3
$40
45
50
6,000
$30
25
25,000
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