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Problem 1

Accessories Co. produces covers for iPods, iPhones, and iPads. They can produce 7000 iPod covers, 5000 iPhone covers, or 3000 iPad covers per day if dedicating full production to one item. Storage space is limited to 6000 cubic feet. Demand is at most 6000, 15000, 8000 units per week respectively. Profit per item is $4, $6, $10. The objective is to maximize total weekly profit from production scheduling.

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Carla18 Villalón
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108 views

Problem 1

Accessories Co. produces covers for iPods, iPhones, and iPads. They can produce 7000 iPod covers, 5000 iPhone covers, or 3000 iPad covers per day if dedicating full production to one item. Storage space is limited to 6000 cubic feet. Demand is at most 6000, 15000, 8000 units per week respectively. Profit per item is $4, $6, $10. The objective is to maximize total weekly profit from production scheduling.

Uploaded by

Carla18 Villalón
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Problem 1

Part A

Accessories Co. is producing three kinds of covers for Apple products: one for the iPod, one
for the iPad, and one for the iPhone. The company's production facilities are such that if they
devote the entire production to iPod covers, they can produce 7000 of them in one day. If
they devote the entire production to iPhone covers, they can produce 5000 of them in one
day. If they devote the entire production to iPad covers, they can produce 3000 of them in
one day. The production schedule is one week (5 working days), and the week's production
must be stored before distribution. Storing 1000 iPod covers (packaging included) takes up
40 cubic feet of space. Storing 1000 iPhone covers (packaging included) takes up 55 cubic
feet of space. Storing 1000 iPad covers (packaging included) takes up 210 cubic feet of space.
The total storage space available is 6000 cubic feet. Due to commercial agreements with
Apple, Accessories Co. has to deliver at least 5000 iPod covers and at least 6000 iPad covers
per week in order to strengthen the product's diffusion. The marketing department
estimates that the weekly demand for iPod covers, iPhone, and iPad covers does not exceed
6000, 15000, and 8000 units. Therefore, the company does not want to produce more than
these amounts for iPod, iPhone, and iPad covers. Finally, the net profit per each iPod cover,
iPhone cover, and iPad cover is $4, $6, and $10, respectively.

The aim is to determine a weekly production schedule that maximizes the total net profit.

Write a linear programming formulation for the problem. For this first formulation, the
decision variables should represent the proportion of time spent each day on producing each
of the three items:

• 𝑥1 =proportion of time devoted each day to iPod cover production


• 𝑥2 =proportion of time devoted each day to iPhone cover production
• 𝑥3 = proportion of time devoted each day to iPad cover production

Part B

Write a second linear programming formulation for the problem. For this second
formulation, the decision variables should represent the number of items of each type
produced over the week:

• 𝑦1 =number of iPod covers produced over the week


• 𝑦2 =number of iPhone covers produced over the week
• 𝑦3 =number of iPad covers produced over the week
The problem data is the same but you must make sure that everything matches the new
decision variables.

PART C
Write a third linear programming formulation for the problem. Assume that each working
day has 8 working hours. For this third formulation, the decision variables should be:

• 𝑧1 =number of hours devoted to the production of iPod covers in one week


• 𝑧2 =number of hours devoted to the production of iPhone covers in one week
• 𝑧3 =total number of production hours employed during the week

The problem data is the same but you must make sure that everything matches the new
decision variables.

PART D
What is the relationship between the variables 𝑧1 , 𝑧2 , 𝑧3 of part (c) and the variables 𝑥1 , 𝑥2 , 𝑥3 of
part (a) of this problem? Give a formula to compute 𝑧1 , 𝑧2 , 𝑧3 from 𝑥1 , 𝑥2 , 𝑥3 .

PART E
What is the profit under optimal production?
Solve the problem using Excel Solver

PART F
Write the objective function and all necessary constraints as an algebraic formulation of the
weekly production schedule problem described above using the following notation:

• 𝑻 is the number of product types.


• 𝒙𝒋 is the number of days devoted to the production of products of type 𝒋.
• 𝒑𝒋 is the number of items of type that can be manufactured in one day, assuming
that the process is devoted to products of type 𝒋.
• P is the number of production days in one week.
• 𝒔𝒋 is the storage space required by an item of type 𝒋.
• 𝑺 is the total storage space available for the week's production.
• 𝒓𝒋 is the unit profit for each product of type 𝒋.
• 𝒅𝒋 is the weekly maximum demand for an item of type 𝒋.

Note: in this more general version of the problem we do not impose a minimum weekly
production for one of the items, as was the case for iPod and iPad smart covers in the initial
problem description. The formulation will therefore be slightly different.

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