acing that pro owners elect to install roll bars in their cars. Deegan Industries manufactures two types of roll bars for sports cars. Model DRB is bolted to the car using existing holes in the car's frame. Model DRW is a heavier roll bar that must be welded to the car's frame. Model DRB requires 20 pounds of a special high alloy steel, 40 minutes of manufacturing time, and 60 minutes of assembly time. Model DRW requires 25 pounds of the special high alloy steel, 100 minutes of manufacturing time, and 40 minutes of assembly time. Deegan's steel supplier indicated that at most 34,000 pounds of the high-alloy steel will be available next quarter. In addition, Deegan estimates that 2,000 hours of manufacturing time and 1,800 hours of assembly time will be available next quarter. The profit contributions are $200 per unit for model DRB and $280 per unit for model DRW. The linear programming model for this problem is as follows: 200DRB + 280DRW Max s.t. 20DRB + 25DRW 40DRB + 100DRW 60DRB + 40DRW The computer solution is shown below. Variable DRB DRW Constraint 1 2 3 Optimal Objective Value = 371200.00000 Variable DRB DRW DRB, DRW 2 Constraint 1 2 3 ≤ 34,000 Steel available 120,000 ≤ 108,000 Assembly minutes 0 400.00000 1040.00000 Value Reduced Cost 0.00000 0.00000 Slack/Surplus 0.00000 0.00000 42400.00000 Manufacturing minutes Objective Allowable Allowable Coefficient Increase Decrease 200.00000 24.00000 88.00000 280.00000 220.00000 30.00000 RHS Value DRW total profit contribution $ Dual Value 8.80000 0.60000 0.00000 Allowable Increase. 34000.00000 9636.36364 120000.00000 16000.00000 108000.00000 Allowable Decrease 4000.00000 52000.00000 Infinite 42400.00000 (a) What is the optimal solution and the total profit contribution (in $)? DRB (b) Another supplier offered to provide Deegan Industries with an additional 500 pounds of the steel alloy at $2 per pound. Should Deegan purchase the additional pounds of the steel alloy? Explain. O Yes, there is no surplus of steel so any additional steel that becomes available should be purchased. O Yes, the dual value for steel available is 8.8. Each pound of steel will increase profits more than the $2 per pound that the supplier is offering. O No, the allowable increase for steel is only 24 pounds, so the additional profits are not applicable for 500 pounds. O No, the dual value for steel available is 0.6. Each pound of steel will not increase profits enough to justify the $2 per pound that the supplier is offering. O No, there is a slack value of 9,636, so additional pounds of steel will not increase profits. (c) Deegan is considering using overtime to increase the available assembly time. What would you advise Deegan to do regarding this option? Explain. Constraint ? ✓ has a slack. Increasing the number of hours of assembly time will ---Select--- profits.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
icon
Related questions
Question
The Racing Club of America sponsors driver education events that provide high-performance driving instruction on actual race tracks. Because safety is a primary consideration at such events, many
owners elect to install roll bars in their cars. Deegan Industries manufactures two types of roll bars for sports cars. Model DRB is bolted to the car using existing holes in the car's frame. Model DRW is
a heavier roll bar that must be welded to the car's frame. Model DRB requires 20 pounds of a special high alloy steel, 40 minutes of manufacturing time, and 60 minutes of assembly time. Model DRW
requires 25 pounds of the special high alloy steel, 100 minutes of manufacturing time, and 40 minutes of assembly time. Deegan's steel supplier indicated that at most 34,000 pounds of the high-alloy
steel will be available next quarter. In addition, Deegan estimates that 2,000 hours of manufacturing time and 1,800 hours of assembly time will be available next quarter. The profit contributions are
$200 per unit for model DRB and $280 per unit for model DRW. The linear programming model for this problem is as follows:
Max
s.t.
200DRB + 280DRW
20DRB + 25DRW
40DRB + 100DRW
60DRB + 40DRW
The computer solution is shown below.
Optimal Objective Value = 371200.00000
Variable
DRB
DRW
Constraint
1
2
3
Variable
<34,000 Steel available
≤ 120,000 Manufacturing minutes
≤ 108,000 Assembly minutes
DRB, DRW >
0
DRB
DRW
Constraint
1
2
3
Value
400.00000
1040.00000
Reduced Cost
0.00000
0.00000
Slack/Surplus
0.00000
0.00000
42400.00000
200.00000
280.00000
Objective Allowable
Coefficient
Increase
24.00000
220.00000
RHS
Value
Dual Value
8.80000
0.60000
0.00000
34000.00000
120000.00000
108000.00000
Allowable
Decrease
88.00000
30.00000
Allowable
Increase
9636.36364
16000.00000
Infinite
Allowable
Decrease
4000.00000
52000.00000
42400.00000
(a) What is the optimal solution and the total profit contribution (in $)?
DRB
DRW
total profit contribution
(b) Another supplier offered to provide Deegan Industries with an additional 500 pounds of the steel alloy at $2 per pound. Should Deegan purchase the additional pounds of the steel alloy? Explain.
Yes, there is no surplus of steel so any additional steel that becomes available should be purchased.
Yes, the dual value for steel available is 8.8. Each pound of steel will increase profits more than the $2 per pound that the supplier is offering.
No, the allowable increase for steel is only 24 pounds, so the additional profits are not applicable for 500 pounds.
No, the dual value for steel available is 0.6. Each pound of steel will not increase profits enough to justify the $2 per pound that the supplier is offering.
No, there is a slack value of 9,636, so additional pounds of steel will not increase profits.
(c) Deegan is considering using overtime to increase the available assembly time. What would you advise Deegan to do regarding this option? Explain.
Constraint ? ✓ has a slack. Increasing the number of hours of assembly time will ---Select--- ✓ profits.
(d) Because of increased competition, Deegan is considering reducing the price of model DRB such that the new contribution to profit is $175 per unit. How would this change in price affect the
optimal solution? Explain.
The objective coefficient range for model DRB shows a lower limit of $
Thus, the optimal solution |---Select--- ✓ change and the new value will be $
(e) If the available manufacturing time is increased by 500 hours, will the dual value for the manufacturing time constraint change? Explain.
The allowable increase is
minutes, so the dual value for this constraint ---Select--- ✓ change.
Transcribed Image Text:The Racing Club of America sponsors driver education events that provide high-performance driving instruction on actual race tracks. Because safety is a primary consideration at such events, many owners elect to install roll bars in their cars. Deegan Industries manufactures two types of roll bars for sports cars. Model DRB is bolted to the car using existing holes in the car's frame. Model DRW is a heavier roll bar that must be welded to the car's frame. Model DRB requires 20 pounds of a special high alloy steel, 40 minutes of manufacturing time, and 60 minutes of assembly time. Model DRW requires 25 pounds of the special high alloy steel, 100 minutes of manufacturing time, and 40 minutes of assembly time. Deegan's steel supplier indicated that at most 34,000 pounds of the high-alloy steel will be available next quarter. In addition, Deegan estimates that 2,000 hours of manufacturing time and 1,800 hours of assembly time will be available next quarter. The profit contributions are $200 per unit for model DRB and $280 per unit for model DRW. The linear programming model for this problem is as follows: Max s.t. 200DRB + 280DRW 20DRB + 25DRW 40DRB + 100DRW 60DRB + 40DRW The computer solution is shown below. Optimal Objective Value = 371200.00000 Variable DRB DRW Constraint 1 2 3 Variable <34,000 Steel available ≤ 120,000 Manufacturing minutes ≤ 108,000 Assembly minutes DRB, DRW > 0 DRB DRW Constraint 1 2 3 Value 400.00000 1040.00000 Reduced Cost 0.00000 0.00000 Slack/Surplus 0.00000 0.00000 42400.00000 200.00000 280.00000 Objective Allowable Coefficient Increase 24.00000 220.00000 RHS Value Dual Value 8.80000 0.60000 0.00000 34000.00000 120000.00000 108000.00000 Allowable Decrease 88.00000 30.00000 Allowable Increase 9636.36364 16000.00000 Infinite Allowable Decrease 4000.00000 52000.00000 42400.00000 (a) What is the optimal solution and the total profit contribution (in $)? DRB DRW total profit contribution (b) Another supplier offered to provide Deegan Industries with an additional 500 pounds of the steel alloy at $2 per pound. Should Deegan purchase the additional pounds of the steel alloy? Explain. Yes, there is no surplus of steel so any additional steel that becomes available should be purchased. Yes, the dual value for steel available is 8.8. Each pound of steel will increase profits more than the $2 per pound that the supplier is offering. No, the allowable increase for steel is only 24 pounds, so the additional profits are not applicable for 500 pounds. No, the dual value for steel available is 0.6. Each pound of steel will not increase profits enough to justify the $2 per pound that the supplier is offering. No, there is a slack value of 9,636, so additional pounds of steel will not increase profits. (c) Deegan is considering using overtime to increase the available assembly time. What would you advise Deegan to do regarding this option? Explain. Constraint ? ✓ has a slack. Increasing the number of hours of assembly time will ---Select--- ✓ profits. (d) Because of increased competition, Deegan is considering reducing the price of model DRB such that the new contribution to profit is $175 per unit. How would this change in price affect the optimal solution? Explain. The objective coefficient range for model DRB shows a lower limit of $ Thus, the optimal solution |---Select--- ✓ change and the new value will be $ (e) If the available manufacturing time is increased by 500 hours, will the dual value for the manufacturing time constraint change? Explain. The allowable increase is minutes, so the dual value for this constraint ---Select--- ✓ change.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.