Question
Situation 4 A manufacturing company must determine how many units of three key components to keep in a dedicated warehouse (its sole purpose is to store these three components) each week. At the warehouse, there are 360 ft2 of floor-space available to hold all three components. Component A requires two ft of warehouse floor-space, component B requires one ft2 of warehouse floor-space, and component C requires three ft2 warehouse floor-space. The holding cost per week of each component's unit is $45, $60 and $75, respectively. Company policy dictates that at least 40% of all units in the warehouse be component B. The company has a total capital for holding these components of $5,000/week. At least 50, 60, and 70 units of each component must be available each week. Formulate an LP model that minimize the total cost of the total holding inventory each week, describe the decision variables, solve the model, and interpret/explain Solver's output
Explanation / Answer
Floorspace sq.ft. Holding cost Units Minimum Units A (x) 2 45 50 50 B (y) 1 60 80 60 C (z) 3 75 70 70 390 12300 200 360 5000 80 Minimize holding cost Z = 45x + 60y + 75z Constraints 360 = 60 z >= 70 There is no feasible solution. If we put the minimum number of units then also the holding cost is higher and also the floor space We also get the constraint of 40% of units of B as invalid. So there is no feasible solution.