Case 3.1 (Auto Assembly)

Rahil Mehdi Hemani
May 1, 2012
CASE 3.1
Sub-Section (a)
GIVEN
Product
1.0 Family Thrillseeker
2.0 Classy Cruiser
3.0 Total Availability
Profit
3,600
5,400
-
Labour Hours
6.0
10.5
48,000
Doors
20,000
Demand
3,500
-
KEY DECISIONS
1.0 Let the Number of Family Thrillseeker be
2.0 Let the Number of Classy Cruiser be
X
Y
OBJECTIVE FUNCTION
1.0 Maximize Z = 3600X + 5400Y
3,600
5,400
4
6
2
11
1
CONSTRAINTS
1.0
2.0
3.0
4.0
4X + 2Y 20000
6X + 10.5Y 48000
Y 3500
X 0, Y 0
20,000
48,000
3,500
12,000
10,000
8,000
6,000
4,000
2,000
-
2,000
4,000
6,000
1.0
8,000
2.0
10,000
12,000
3.0
Z
3.0
2.0
1
11
3,500
48,000
1,875
3,500
25,650,000
1.0
2.0
4
6
2
11
20,000
48,000
3,800
2,400
26,640,000
1.0
4.0
20,000
-
5,000
-
18,000,000
Therefore, to maximize total profit, 3800 Family Thrillseeker and 2400 Classy Cruiser should
be assembled. This will generate total profit of $26640000.
Rahil Mehdi Hemani
May 1, 2012
CASE 3.1
Sub-Section (b)
GIVEN
Product
2.0 Classy Cruiser
Profit
3,600
5,400
-
Labour Hours
6.0
10.5
48,000
Doors
20,000
Demand
4,200
-
KEY DECISIONS
X
Y
OBJECTIVE FUNCTION
1.0 Maximize Z = 3600X + 5400Y
3,600
5,400
4
6
2
11
1
CONSTRAINTS
1.0
2.0
3.0
4.0
4X + 2Y 20000
6X + 10.5Y 48000
Y 4200
X 0, Y 0
20,000
48,000
4,200
12,000
10,000
8,000
6,000
4,000
2,000
-
2,000
4,000
6,000
1.0
8,000
2.0
10,000
12,000
3.0
Z
2.0
3.0
1.0
2.0
1.0
4.0
11
1
48,000
4,200
650
4,200
25,020,000
4
6
2
11
20,000
48,000
3,800
2,400
26,640,000
20,000
-
5,000
-
18,000,000
4
-
be assembled and increase in demand of Classy Cruiser by 20% will not effect our decision
Rahil Mehdi Hemani
May 1, 2012
CASE 3.1
Sub-Section (c) & (d)
GIVEN
Product
2.0 Classy Cruiser
Profit
3,600
5,400
-
Labour Hours
6.0
10.5
60,000
Doors
20,000
Demand
3,500
-
KEY DECISIONS
X
Y
OBJECTIVE FUNCTION
1.0 Maximize Z = 3600X + 5400Y
3,600
5,400
4
6
2
11
1
CONSTRAINTS
1.0
2.0
3.0
4.0
4X + 2Y 20000
6X + 10.5Y 60000
Y 3500
X 0, Y 0
20,000
60,000
3,500
12,000
10,000
8,000
6,000
4,000
2,000
-
2,000
4,000
6,000
1.0
8,000
2.0
10,000
12,000
3.0
Z
2.0
3.0
11
1
60,000
3,500
3,875
3,500
32,850,000
1.0
2.0
4
6
2
11
20,000
60,000
3,000
4,000
32,400,000
1.0
3.0
2
1
20,000
3,500
3,250
3,500
30,600,000
20,000
-
5,000
-
18,000,000
1.0
4.0
(c) To maximize total profit, 3250 and 3500 should be assembled. This will generate total
profit of $30600000; and (d) A total cost of $3960000 (30600000 - 26640000) can be the max
viable cost of Overtime.
Rahil Mehdi Hemani
May 1, 2012
CASE 3.1
Sub-Section (e) & (f)
GIVEN
Product
2.0 Classy Cruiser
Profit
3,600
5,400
-
Labour Hours
6.0
10.5
60,000
Doors
20,000
Demand
4,200
-
KEY DECISIONS
X
Y
OBJECTIVE FUNCTION
1.0 Maximize Z = 3600X + 5400Y
3,600
5,400
4
6
2
11
1
CONSTRAINTS
1.0
2.0
3.0
4.0
4X + 2Y 20000
6X + 10.5Y 60000
Y 4200
X 0, Y 0
20,000
60,000
4,200
12,000
10,000
8,000
6,000
4,000
2,000
-
2,000
4,000
6,000
1.0
8,000
2.0
10,000
12,000
3.0
Z
2.0
3.0
11
1
60,000
4,200
2,650
4,200
32,220,000
1.0
2.0
4
6
2
11
20,000
60,000
3,000
4,000
32,400,000
1.0
3.0
4
-
2
1
20,000
4,200
2,900
4,200
33,120,000
1.0
4.0
20,000
-
5,000
-
18,000,000
4
-
(e) To maximize total profit, 3000 Family Thrillseeker and 4000 Classy Cruiser should be
assembled. This will generate total profit of $32400000; and (f) The incremental profit is
$5760000 whereas incremental cost of Overtime and Advertising Campaign is $2,100,000.
The idea, should therefore, be implemented
Rahil Mehdi Hemani
May 1, 2012
CASE 3.1
Sub-Section (g)
GIVEN
Product
2.0 Classy Cruiser
Profit
2,800
5,400
-
Labour Hours
6.0
10.5
48,000
Doors
20,000
Demand
3,500
-
KEY DECISIONS
X
Y
OBJECTIVE FUNCTION
1.0 Maximize Z = 2800X + 5400Y
2,800
5,400
4
6
2
11
1
CONSTRAINTS
1.0
2.0
3.0
4.0
4X + 2Y 20000
6X + 10.5Y 48000
Y 3500
X 0, Y 0
20,000
48,000
3,500
12,000
10,000
8,000
6,000
4,000
2,000
-
2,000
4,000
6,000
1.0
8,000
2.0
10,000
12,000
3.0
Z
2.0
3.0
11
1
48,000
3,500
1,875
3,500
24,150,000
1.0
2.0
4
6
2
11
20,000
48,000
3,800
2,400
23,600,000
1.0
4.0
20,000
-
5,000
-
14,000,000
Rahil Mehdi Hemani
May 1, 2012
CASE 3.1
Sub-Section (h)
GIVEN
Product
2.0 Classy Cruiser
Profit
3,600
5,400
-
Labour Hours
7.5
10.5
48,000
Doors
20,000
Demand
3,500
-
KEY DECISIONS
X
Y
OBJECTIVE FUNCTION
1.0 Maximize Z = 3600X + 5400Y
3,600
5,400
4
8
2
11
1
CONSTRAINTS
1.0
2.0
3.0
4.0
4X + 2Y 20000
7.5X + 10.5Y 48000
Y 3500
X 0, Y 0
20,000
48,000
3,500
12,000
10,000
8,000
6,000
4,000
2,000
-
2,000
4,000
6,000
1.0
8,000
2.0
10,000
12,000
3.0
Z
3.0
2.0
1
11
3,500
48,000
1,500
3,500
24,300,000
1.0
2.0
4
8
2
11
20,000
48,000
4,222
1,556
23,600,000
1.0
4.0
20,000
-
5,000
-
18,000,000
be assembled. This increased labour hour will generate total profit of $24300000.
Rahil Mehdi Hemani
May 1, 2012
CASE 3.1
Sub-Section (i)
GIVEN
Product
2.0 Classy Cruiser
Profit
3,600
5,400
-
Labour Hours
6.0
10.5
48,000
Doors
20,000
Demand
3,500
-
KEY DECISIONS
X
Y
OBJECTIVE FUNCTION
1.0 Maximize Z = 3600X + 5400Y
3,600
5,400
4
6
2
11
1
CONSTRAINTS
1.0
2.0
3.0
4.0
4X + 2Y 20000
6X + 10.5Y 48000
Y 3500
X 0, Y 0
20,000
48,000
3,500
12,000
10,000
8,000
6,000
4,000
2,000
-
2,000
4,000
6,000
1.0
8,000
2.0
10,000
12,000
3.0
Z
3.0
2.0
1.0
2.0
1.0
4.0
1
11
3,500
48,000
1,875
3,500
25,650,000
4
6
2
11
20,000
48,000
3,800
2,400
26,640,000
20,000
-
5,000
-
18,000,000
4
-
be assembled. This will generate total profit of $25650000, i.e. decrease in profit of
$990000.
Rahil Mehdi Hemani
May 1, 2012
CASE 3.1
Sub-Section (j)
GIVEN
Product
2.0 Classy Cruiser
Profit
2,800
5,400
-
Labour Hours
7.5
10.5
60,000
Doors
20,000
Demand
4,200
-
KEY DECISIONS
X
Y
OBJECTIVE FUNCTION
1.0 Maximize Z = 2800X + 5400Y
2,800
5,400
4
8
2
11
1
CONSTRAINTS
1.0
2.0
3.0
4.0
4X + 2Y 20000
7.5X + 10.5Y 60000
Y 4200
X 0, Y 0
20,000
60,000
4,200
12,000
10,000
8,000
6,000
4,000
2,000
-
2,000
4,000
6,000
1.0
8,000
2.0
10,000
12,000
3.0
Z
2.0
3.0
11
1
60,000
4,200
2,120
4,200
28,616,000
1.0
2.0
4
8
2
11
20,000
60,000
3,333
3,333
27,333,333
1.0
4.0
20,000
-
5,000
-
14,000,000

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Rahil Mehdi Hemani

Rahil Mehdi Hemani

Rahil Mehdi Hemani

Rahil Mehdi Hemani

Rahil Mehdi Hemani

Rahil Mehdi Hemani

Rahil Mehdi Hemani

Rahil Mehdi Hemani

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