Utica Electronics sells two different types of air conditioners. One is called North Wind and the other type is called Cool Front. Utica Electronics makes $220 as the unit profit for each North Wind it sells while the unit profit for Cool Front is $500. For each month, Utica Electronics has enough motors and parts to support its factory for assembling up to 350 units of North Wind and 295 units of Cool Front. A worker at the factory spends 30 hours to assemble each North Wind and 50 hours for each Cool Front. There are 80 works at the factory and each worker can offer at most 200 hours per month. Since North Wind is the new model, Utica Electronics wants North Wind to be at least half of the total production units. Due to the extremely hot weather, Utica Electronics is sure that all the assembled air conditioners will be sold. Utica Electronics wants to know how to manage the production arrangement for its air conditioners in order to maximize the monthly profit.  (a) Formulate a linear programming model for Utica Electronics. (b) Use the graphical approach to solve the model and report your managerial decision. (c) Report the maximized monthly profit for Utica Electronics. (d) The unit profit for a North Wind now increases to $450. What will be your revised managerial decision? (e) What is the revised profit from (d)?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter11: Simulation Models
Section: Chapter Questions
Problem 54P
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Utica Electronics sells two different types of air conditioners. One is called North Wind and the other type is called Cool Front. Utica Electronics makes $220 as the unit profit for each North Wind it sells while the unit profit for Cool Front is $500. For each month, Utica Electronics has enough motors and parts to support its factory for assembling up to 350 units of North Wind and 295 units of Cool Front.

A worker at the factory spends 30 hours to assemble each North Wind and 50 hours for each Cool Front. There are 80 works at the factory and each worker can offer at most 200 hours per month. Since North Wind is the new model, Utica Electronics wants North Wind to be at least half of the total production units.

Due to the extremely hot weather, Utica Electronics is sure that all the assembled air conditioners will be sold. Utica Electronics wants to know how to manage the production arrangement for its air conditioners in order to maximize the monthly profit. 

(a) Formulate a linear programming model for Utica Electronics.

(b) Use the graphical approach to solve the model and report your managerial decision.

(c) Report the maximized monthly profit for Utica Electronics.

(d) The unit profit for a North Wind now increases to $450. What will be your revised managerial decision?

(e) What is the revised profit from (d)?

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