The Acme Calculator Company is trying
to schedule production of two of their most popular electronic
calculators for the next three months (June, July & August).
The calculators are called the Scientist and the Businessman.
Information about both calculators is given below:
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Demand For
Scientist
(units)
Demand For
Businessman
(units)
Total Assembly
Time Available
(minutes)
Total Electronic Chips
Available
(units)
June
245
425
1,900
3,250
July
400
700
3,100
4,500
August
590
480
2,700
4,800
Calculator
Beginning Inventory
(end of May)
(units)
Electronic Chips Required
(#/calculator)
Assembly Time Required
(minutes/unit)
Production Cost
($/unit)
End Of Month Inventory
Cost
($/unit)
Scientist
30
4
3
$11
$1.50
Businessman
50
5
2
$15
$0.80
The company wishes to end production in August with 250 of the
Scientist calculators and 90 of the Businessman calculators in
inventory for the September to November production cycle.
Develop a linear programming model for determining the optimum
production schedule and inventory levels of each calculator so that
total cost is minimized. – (25 Points)
What are the optimum decisions? What is the minimum total cost
associated with these decisions? – (10 Points)
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