Merton Trucks

Non-Negativities
 + Engine Assembly

Engine Assy.
Constraint
 + Metal Stamping

Metal Stamping
Constraint

Engine Assy.
Constraint
 + 101 Assembly
Model 101 Assy.
Constraint

Metal Stamping
Constraint

Engine Assy.
Constraint
 + 102 Assembly
Model 101 Assy.
Constraint

Metal Stamping
Constraint Model 102 Assy.
Constraint

Engine Assy.
Constraint
 Feasible Region
Metal Stamping
Constraint Model 101 Assy.
Constraint
Model 102 Assy.
Constraint

Engine Assy.
Constraint
 Contribution = 10 Million
Metal Stamping
Constraint Model 101 Assy.
Constraint
Model 102 Assy.
Constraint

Engine Assy.
Constraint

Contribution
Line
 Contribution = 10.5 Million
Metal Stamping
Constraint Model 101 Assy.
Constraint
Model 102 Assy.
Constraint

Engine Assy.
Constraint
Contribution
Line
 Contribution = 11 Million
Metal Stamping
Constraint Model 101 Assy.
Constraint
Model 102 Assy.
Constraint

Engine Assy.
Constraint
Contribution
Line
 Contribution = 11.5 Million
Metal Stamping
Constraint Model 101 Assy.
Constraint
Model 102 Assy.
Constraint

Engine Assy.
Constraint Contribution
Line
Now the problems
Engine Assy. Cap. Increases

2000 Model 101s

1000 Model 102s
Contribution = $11,000,000
Engine Assy. Cap. Increases

2000 Model 101s

1000 Model 102s
Contribution = $11,000,000
Engine Assy. Cap. Increases

1999 Model 101s

1001 Model 102s
Contribution = $10,002,000
 How Much to Add?
Mix: 2000 M101s, 1000 M102s Resource Balance
Resource Unused • Engine Assy.
Metal Stamping 0 – does not matter
Model 101 Assy. 1000 • Metal Stamping
Model 102 Assy. 1500 – no change
• Model 101 Assy.
Mix: 1999 M101s, 1001 M102s
– 2 less hours required
Resource Unused
• Model 102 Assy.
Metal Stamping 0
– 3 more hours required
Model 101 Assy. 1002
Model 102 Assy. 1497
Short Term – Long Term

2000 Model 101s

1000 Model 102s
Contribution = $11,000,000
Short Term – Long Term

2000 Model 101s

1000 Model 102s
Contribution = $11,000,000
Short Term – Long Term

2000 Model 101s

1000 Model 102s
Contribution = $11,000,000

2250 Model 101s

750 Model 102s
Contribution = $10,500,000