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As summarized in the table as below, each type of equipmentasked difference amount about PC Board, Resistors, memory Chips, and AssemblyLabor.. board, 100,000.00 Resistors, 30,000.00 Mem

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Subject:

Valu-Com Electronics manufacturing 5 difference telecom type card (TEC) forcomputers and Laptop As summarized in the table as below, each type of equipmentasked difference amount about PC Board, Resistors, memory Chips, and AssemblyLabor

Per Unit Requirements Hyperlin

k

Fastlink Speedlink Microlin

k

Etherlin k

Mức giá bán sỉ đơn vị và giá thành cho mỗi kiểu TEC như sau:

Per unit revenues and costs ($) Hyperlin

k

Fastlink Speedlink Microlin

k

Etherlin k

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board, 100,000.00 Resistors, 30,000.00 Memory chips and 5,000.00 Assembly labor.The company can sell all off the product, however the marketing Dept wants to makesure that the company must produce at least 500 product each type and the number ofFastlink by twice as Hyperlink card and the company want to maximize profit.

a Let's build LP's model for this problem

b Creat a speadsheet model for this problem and solve it by Solver in excel

c What is the optimal plan?

d Is Valu-Com can earn more money if it arranged for assembly workers to workovertime?

Now let's Solver to create a senssitivity analysis report for the problem and answerthe next question

e Resources (Control conditions) in the above problem is to be used up?

f If the company want to remove the product, it should remove empty?

g If the company can buy another 1000 Memory Chips with the same cost, whether

do it, and how much additional profit is it?

Task Question 1: Building an optimal model (LP) to the problem?

In order to build the optimal model (Linear Programming) to Calu-com Electronics,based on the goods which the company produces are telecom cards, we shall assumethat each type of card and the cost of telecomunications is a variable, detail asfollows:

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In which: Profit = Unit price- equivalent cost Ci = Pi - Ti

At the request of the company marketing department, the company must produce atleast 500 units per type and the Fastlink card number more than 2 times Hyperlinkcard number To maximize profit, the following equation are:

Question 2: Creating models and solve problems by Solve?

- Create a model problem:

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Hyperlink Fastlink Speedlink Microlink Etherlink

Decision Variable

500 1,000 1,500 2,250

500

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189 149 129 169 139

Cost

136 101 96 137 101

Total profit

Unit Profit

53 48 33 32 38

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Used

PC board

20 15 10 8 5 60500

Resistors

28 24 18 12

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Memory chips

8 8 4 4 6 30000

Assembly labor

0.75 0.60 0.50 0.65 1.00 3687.5

Demand

500 500 500

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Engine: Standard LP Simplex

Solution Time: 00 Seconds

Iterations: 4

Subproblems: 0

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Incumbent Solutions: 0

Target Cell (Max)

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Cell Name Original Value Final Value

$H$8

Unit Profit Total profit

0 215000

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Adjustable Cells

Cell Name Original Value Final Value

$C$3

Decision Variable

0 500

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Decision Variable

0 1000

$E$3

Decision Variable

0 1500

$F$3

Decision Variable

0 2250

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Decision Variable

0 500

Constraints

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Cell Name Cell Value Formula Status Slack

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Worksheet: [Book1]Sheet1

Report Created: 02/22/2014 16:42:17 PM

Target Cell (Max)

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Cell Name Final Value

$H$8

Unit Profit Total profit

215000

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Adjustable Cells

Final Reduced Objective Allowable Allowable

Cell Name Value Cost

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Increase Decrease

$C$3

Decision Variable

500 -43.6666667

53 43.66666667 1E+30

$D$3

Decision Variable

1000 0 48 16 1E+30

$E$3

Decision Variable

1500

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33 15 1

$F$3

Decision Variable

2250 0 32 1 5.272727273

$G$3

Decision Variable

500 -9.66666667

38 9.666666667 1E+30

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Final Shadow Constraint Allowable Allowable

Cell Name Value

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R.H Side Increase Decrease

$H$11

PC board Used

60500 0 80000 1E+30 19500

$H$12

Resistors Used

100000 0.166666667 100000 10500 6000

$H$13

Momory chips Used

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7.5 30000 2000 2333.333333

$H$14

Labor Used

3737.5 0 5000 1E+30 1262.5

$D$3

Decision Variable

1000 -16 0 875 500

Question 3: What is the optimal plan?

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Using Solver to create a sensitivity analysis report:

Value

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Allowabl e

Coefficien

Decreas e

Allowabl e

Allowabl e

Decreas e

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Question 5 Resources (control conditions) in this problem are used up?

There are two ways to do:

Looking at the sensitivity analysis report in constrain part, to compare the columnvalue and constrain R.H.Side column

These resources have been used up in the production are: Resistors, Memory Chips.

Question 6 If the company want to remove the product, it should remove empty?

On the basis of the formula for calculating the added value of the objective function,

we have:

Profit = Unit cost - material cost

= Ci - ∑QiSi

We have:

Hyperlink unit profit = (189-136) - (20*0+28*0,17+8*7,5+0,75*0)= -11,76

Fastlink unit profit = (149-101) - (15*0+24*0,17+8*7,5+0,6*0)= -16,08

Speedlink unit profit = (129-96) - (10*0+18*0,17+4*7,5+0,5*0)= -0,06

Microlink unit profit = (169-137) - (8*0+12*0,17+4*7,5+0,65*0)= -0,04

Etherlink unit profit = (139-101) - (5*0+16*0,17+6*7,5+1*0)= -9,72

Conclusion: Based on the above results, due to the unit's profit Fastlink is the lowest,thus if you remove one product should give Fastlink production

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cost, whether do it, and how much additional profit is it?

We have a new LP charts with conditions controlled of Memory chips are 31,000, we

have been using the solver results as follows:

LP Model for Valu-com Electronics (TEC PRODUCTION) Decision Variable: 500 1,000 1,000

I see the difference in profit is: 225,500- 215,000= $7,500

(*) This should be done because the profitability of production will increase as $

7,500

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