sensitivity analysis determine how much the production Jndvar shipping cost per unit would Oave change produce additional units the PT-100 the Philippines Plant required _ round Jour answer decimal digits At least 0.05 unit: (d) Use sensitivity analysis determine how much the production and/or shipping cost per unit would have change produce additional units of the PT-2OO the Mexico plant. If required round Your answer two decimal digits_ At Ieast 0.05 unit:



Answer :

Option a) Linear Program Model - P1, P2, P3, M1, M2, M3 [tex]\geq[/tex] 0

Option b) Total Production and shipping cost = $524,100

Option c) Shipping cost decreased by = $0.04

Option d) Shipping cost per unit be decreased by = $0.05

According to the question given,

P1 = PT-100

P2 = PT-200

a) Linear Program Model could be shown as,

P1 = Number of PT-100 models

P2 = Number of PT-200 models

P3 = Number of PT-300 models

M1 = Number of PT-100 products

M2 = Number of PT-200 products

M3 = Number of PT-300 products

Calculations of the objectives =

(0.95+0.51)P1 + (0.98+0.15)P2 + (1.34+0.15)P3 + (0.98+0.08)M1 + (1.06+0.08)M2 + (1.15+0.08)M3

Summing the models and products in order,

P1 + M1 Greater than and equal to 200000

P2 + M2 greater than and equal to 100000

P3 + M3 greater than and equal to 150000

P1 + P2 less than and equal to 175000

M1 + M2 less than and equal to 160000

P3 less than and equal to 75000

M3 less than and equal to 100000

⇒  P1, P2, P3, M1, M2, M3 [tex]\geq[/tex] 0

b) Using the Exel Solver

Decision Variable              Value

P1                                        40000

P2                                       100000

P3                                       500000

M1                                       160000

M2                                      0

M3                                      100000

Total Production and shipping cost = $524,100

c) In the objective coefficient P1 is 0.04 so the shipping cost per unit will be decreased by $0.04

d) Since the allowance is decreased in M2 is 0.05 so the cost per unit will be decreased by $0.05

Therefore,

Option a) Linear Program Model - P1, P2, P3, M1, M2, M3 [tex]\geq[/tex] 0

Option b) Total Production and shipping cost = $524,100

Option c) Shipping cost decreased by = $0.04

Option d) Shipping cost per unit be decreased by = $0.05

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Photon Technologies, Inc., a manufacturer of batteries for mobile phones, signed a contract with a large electronics manufacturer to produce three models of lithium-ion battery packs for a new line of phones. The contract calls for the following

Battery Pack Production Quantity

PT-100 200,000

PT-200 100,000

PT-300 150,000

Photon Technologies can manufacture the battery packs at manufacturing plants located in the Philippines and Mexico. The unit cost of the battery packs differs at the two plants because of differences in production equipment and wage rates. The unit costs for each battery pack at each manufacturing plant are as follows:

Plant

Product Philippines Mexico

PT-100 0.95 0.98

PT-200 1.34 0.98

PT-300 1.06 1.15

The PT-100 and PT-200 battery packs are produced using similar production equipment available at both plants. However, each plant has a limited capacity for the total number of PT-100 and PT-200 battery packs produced. The combined PT-100 and PT-200 production capacities are 175,000 units at the Philippines plant and 160,000 units at the Mexico plant. The PT-300 production capacities are 75,000 units at the Philippines plant and 100,000 units at the Mexico plant. The cost of shipping from the Philippines plant is $0.15 per unit, and the cost of shipping from the Mexico plant is 0.08 per unit.

(a) Develop a linear program that Photon Technologies can use to determine how many units of each battery pack to produce at each plant to minimize the total production and shipping cost associated with the new contract.

(b) Solve the linear program developed in part (a), to determine the optimal production plan. Qty Produced Philippines Mexico PT-100 16000c 40000 PT-200 100000 0 5000 1000 PT-300 Total Cost-$

(c) Use sensitivity analysis to determine how much the production and/or shipping cost per unit would have to change to produce additional units of the PT-100 in the Philippines plant. If required, round your answer to two decimal digits At least $ / unit.

(d) Use sensitivity analysis to determine how much the production and/or shipping cost per unit would have to change to produce additional units of the PT-200 in the Mexico plant. If required, round your answer to two decimal digits. At least $ .05/ unit.

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