Purchase Solution

Linear programming model for bicycle manufacturer

Not what you're looking for?

Ask Custom Question

A bicycle manufacturer is determining its production schedule for the next 6 months. Assume that it costs this company $150 to manufacture each bicycle. At the end of each month, a holding cost of $35 per bicycle left in inventory is incurred. No more than 40 bicycles can be stored in inventory at any point in time. Monthly demands for bicycles are projected to be as follows: 150 in month 1; 175 in month 2; 165 in month 3; 156 in month 4; 169 in month 5; and 178 in month 6. Assume that at the beginning of month 1, 10 completed bicycles are in inventory. Finally, this company can produce up to 170 bicycles per month. Formulate and solve a linear programming model to find a cost-minimizing production schedule that meets all demands on time.

Answer the following questions:
3.1) Write down the decision variables.

3.2) Write down the optimization statement for the objective function.

3.3) Write down the constaints.

3.4) With Excel Solver, what is the optimal production schedule? (Please hand in a printed copy of the report)

3.5) By Excel Solver, what is the sensitivity report? (Please hand in a printed copy of the report)

Purchase this Solution

Solution Summary

The linear programming model for bicycle manufacturers are examined. The decision variables are written.

Purchase this Solution


Free BrainMass Quizzes
Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Introduction to Finance

This quiz test introductory finance topics.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.