Use an executable LINDO script. CarZone LTD has contracted with DriveTower to su
ID: 669336 • Letter: U
Question
Use an executable LINDO script.
CarZone LTD has contracted with DriveTower to supply their automotive discount stores with wrenches and chisels. DriveTower’s weekly demand is for 1500 wrenches and 1200 chisels. CarZone LTD’s present one-shift capacity is not large enough to produce the requested units and they must resort to overtime and possibly subcontracting with other tool shops to meet the demand. These alternatives result in an increase in the production cost per unit, as shown in the following table.
Tool
Production Type
Weekly Production
Range (units)
Unit Cost ($)
Wrenches
Regular
0-550
2.00
Overtime
551-800
2.80
Subcontracting
801- infinity
3.00
Chisel
Regular
0-620
2.10
Overtime
621-900
3.20
Subcontracting
901- infinity
4.20
Use an executable LINDO script.
Formulate using a LINDO script format and solve the LP for the minimum cost production schedule for each tool.
What is the effect on total weekly production cost of increasing the regular and overtime capacities for each tool by one unit?
Tool
Production Type
Weekly Production
Range (units)
Unit Cost ($)
Wrenches
Regular
0-550
2.00
Overtime
551-800
2.80
Subcontracting
801- infinity
3.00
Chisel
Regular
0-620
2.10
Overtime
621-900
3.20
Subcontracting
901- infinity
4.20
Explanation / Answer
The LP for the minimum cost production :
2 W + 2 C = 0 ....... (1)
2 W + 3 C = 0 ........ (2)
After solving both equation 1 and equation 2 , We get :
C = 1
W = -1
The effect on total weekly production cost of increasing the regular and overtime capacities for each tool by one unit is that when the unit of the production gets increased by one unit the cost gets increased. Which means that the profit is to be maximized.
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