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Operations Research

The Eastside Manufacturing Company produces four different aircraft components from fabricated sheet metal for several major aircraft companies. The manufacturing process consists of four operations - stamping, assembly, finishing, and packaging. The processing time per unit for each of the operations and total available hours per year to produce these components are given below.

(see chart in attached file)

The sheet metal required for each component, the estimated annual demand, and the profit contribution provided by each component, are as follows:

(see chart in attached file)

The company has 15,000 square feet of fabricated metal delivered each month. The company has the following prioritized production goals for these components:
? Avoid the use of overtime given the low profit margins.
? Meet all component demand.
? Achieve an annual profit contribution of at least $700,000
? Avoid additional material orders - pricing is dependent upon annual contracts with fixed amounts and delivery schedules

a. Formulate a linear programming model to determine the quantity of each component to produce to achieve the company's goals.

b. Determine the solution that will best achieve the company's goals in component production, including the quantity of each component produced, the annual profit contribution attained, and the levels of goal achievement.

c. Determine how the solution would be affected if the first two goal priorities were reversed

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Solution Summary

Excel file contains formulation and optimal solution of a linear programming model to determine the quantity of each component to produce to achieve the company's goals.

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