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Operations Analytics (Class 17-20) Case Study
Operations Analytics (Class 17-20) Case Study
Operations Analytics (Class 17-20) Case Study
Variables
Model 101 ($) Model 102 ($) Objective
1900 1100 11200000
Hence best product mix for this problem is;- CORNER POINTS OBJECTIVE FUNCTION VALUES
#Model 101 = 1900
#Model 102 = 1100 O(0,0) 3000X0+5000X0=0
from (b) we get;
X1= 2000- β A(2500,0) 3000X2500+5000X0=0
X2= 1000+ β B(2500,500) 300X2500+5000X500=10,00,000
where β = increase in engine assembly capacity
C(1900,1100) 3000X1900+5000X1100=11,20,000
D(0,2050) 3000X0+5000X2500=10,25,000
MAX Z at C(1900,1100)
Q1 d)
500 units of Engine Assembly capacity can be added before it capacity
worth changes.
Profit At 4500 &4501 is same i.e. production decision does not change.
Q2
Variables
Model 101 Model 102 Model 103 Objective
2000 1000 0 11000000
Q3 b)
Model 103 should be more than >2350 in order to make it worthy of production
Let, the units Model 101 and Model 102 produced during the overtime as X3
and X4 respectively.
Management proposal to
produce 101 Models at least 3
times the number of Model 102.
Therefore we have a new
constraint of X1 ≥ 3X2 which
transforms to X1-3X2 ≥ 0.
Variables
Model 101 Model 102 Objectives
2250 750 10500000
FEASIBLE REGION
Introduction of Model 103 (X3)
Model 101 (x1) Model 102 (x2) Model 103 (x3) Profit
Product Mix Produced 2000 1000 0 11000000
Merton Truck Company Product Mix
Problem
Model 102
with
Model 101 with overtime
Model 101 (x1) Model 102 (x2) overtime (X3) (X4)
Profit ($) 3000 5000 2400 3800
Overtime
Prodn
Hours Hours Overtime Hours
Required to Required to Prodn Hours Required Constraints
produce X1 produce X2 Required (X3) (X4) Hours Used type Hours Available
R1 R2
X1 Rs. 6/-
Profit per
Decision unit of
Variables product
X2 Rs. 5/- sold
5 12
Resource
Availability
Example 1: Product Mix Problem
X1: No. of units of doll type 1 produced Decision
X2: No. of units of doll type 2 produced Variables
X1, X2 ≥ 0
Mathematical Form
46
47
Problem Formulation
Problem Formulation Step