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##### What is the optimal production schedule for this firm? What is the profit contribution of each of

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Question;POM-QM for Windowssoftware;For this part of this project, you will need;to use the POM software;1.;Read Appendix IV of the Operations Management(Heizer & Render, 2011) textbook.;2.;Install and launch the POM-QM for Windowssoftware and from the main menu select Module, and thenLinear Programming.Note:You can retrieve the POM-QM for;Windowssoftware;from either the CD-ROM that accompanied your Heizer and Render (2011) textbook.;3.;Program the linear programming formulation for the problem below;and solve it with the use of POM. (Refer to Appendix IV from the Heizer and;Render (2011) textbook.)Note:Do not program the non-negativity constraint;as this is already assumed by the software.;For additional support, please reference the POM-QM for;Windowsmanual;provided in this week?s Learning Resources.;Individual Project;problem;A firm uses three machines in the;manufacturing of three products;?;Each unit of product 1 requires three hours on machine 1, two;hours on machine 2 and one hour on machine 3.;?;Each unit of product 2 requires four hours on machine 1, one;hour on machine 2 and three hours on machine 3.;?;Each unit of product 3 requires two hours on machine 1, two;hours on machine 2 and two hours on machine 3.;The contribution margin of the three products;is ?30, ?40 and ?35 per unit, respectively.;Available for scheduling are;?;90 hours of machine 1 time;?;54 hours of machine 2 time, and;?;93 hours of machine 3 time.;The linear programming formulation of this;problem is as follows;Maximise Z = 30X1+ 40X2+ 35X3;3X1+ 4X2+ 2X3<= 90;2X1+ 1X2 + 2X3<= 54;X1+ 3X2 + 2X3 = 0;Answer the following questions by looking at;the solution. Submit your answers by the end of Day 7 (Wednesday).;1.;What is the optimal production schedule for this firm? What is;the profit contribution of each of these products?;2.;What is the marginal value of an additional hour of time on;machine 1? Over what range of time is this marginal value valid?;3.;What is the opportunity cost associated with product 1? What;interpretation should be given to this opportunity cost?;4.;How many hours are used for machine 3 with the optimal solution?;5.;How much can the contribution margin for product 2 change before;the current optimal solution is no longer optimal?

Paper#60285 | Written in 18-Jul-2015

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