I posted this yesterday but the \"expert answer\" was merely a cut and paste of
ID: 444645 • Letter: I
Question
I posted this yesterday but the "expert answer" was merely a cut and paste of the mathematical answer I found on a different website. PLEASE NOTE: This question is not looking for the answer mathematically. I know how to solve for the answer. What this is asking for is to setup this question in Excel and use the Solver function to come up with the answer. And that's where I'm lost. I'm having a lot of trouble getting solver to work for this. Any help would be appreciated.
I was a bit unsure of the category for this so apologies if this is in the wrong place.
United Manufacturing is planning on spending up to $4,000,000 on new automated assembly machinery. They have decided to purchase two different models of equipment and are trying to decide how many of each model they should purchase. The F300 model costs $350,000 each. The S250 model costs $220,000 each. The F300 has some extra features so at least one third of the models purchased should be the F300. The annual maintenance budget for the new equipment is set at $120,000. The annual maintenance cost of each F300 is $12,000. The annual maintenance cost of each S250 is $7,500. Each F300 will produce 125 units per day. Each S250 will produce 81 units per day. Set up a worksheet and then use Solver to determine how many of each model to purchase so that the daily production is maximized as long as the other constraints are met.Explanation / Answer
Maximize Z= 125*x1+ 81*x2
Subject to
350000X1+220000X2<=4,000,000
12000X1+7500X2<=120000
(2/3)X1 -(1/3)X2>=0
Solver Solutions is given below (Please note that, this question can be solved by simply by Graphical method)
After solving By Solver Application
The Answer is X1 (F300) = 4.444
and X2 (S250) = 8.88889
and Maximum Production possible is 1275.55
Please note note that, Producing 8.88 and 4.44 is not possible, so check it with converting 8 and 4 within the available constrains. Few of you inputs ( total purchasing budget, annual maintenence cost) will not be fully utilised