Solve Problem and Applications chap 13 - problem 7 complete solutions correct answers key

Solve Problem and Applications chap 13 - problem 7 complete solutions correct answers key

[Klein Industries manufactures three types of portable air compressors] in page 451 at the end of chapter 13 in your textbook, USA 5th edition. The data is given as part of the question. There is no external data set provided. Use what is given by the problem.

13-7.  Klein Industries manufactures three types of portable air compressors: small, medium, and large, which have unit profits of $20.50, $34.00, and $42.00, respectively. The projected monthly sales are:

Small

Medium

Large

Minimum

14,000

6,200

2,600

Maximum

21,000

12,500

4,200

The production process consists of three primary activities: bending and forming, welding, and painting. The amount of time in minutes needed to process each product in each department is shown below: 

Small

Medium

Large

Available Time

Bending/Forming

0.4

0.7

0.8

23,400

Welding

0.6

1.0

1.2

23,400

Painting

1.4

2.6

3.1

46,800

   
Answer the following questions:

a.    Formulate and solve a linear optimization model using the auxiliary variable cells method and write a short memo to the production manager explaining the sensitivity information. 

b.    Solve the model without the auxiliary variables and explain the relationship between the reduced costs and the shadow prices found in part a. 

c.    How many of each type of air compressor should the company produce to maximize profit?

Solution Tip: You must use Solver tool in Excel. Set your constraints right, and fill in the solver dialogue box properly. Also, additional slides to explain basics and a basic example (titled: Fig3-17) is attached. The example and slides are for demonstration and illustration purpose only to help practice how to use solver tool.

Writing format instructions:

1) Write a formal APA paper (not in a Q&A format) to present the results including the short memo to the production manager explaining the sensitivity information as well as explaining the relationship between the reduced costs and the shadow prices found in part a.

2) Formulate and solve the problem in an Excel worksheet using the Solver tool. PLEASE show all work.