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Metron

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Case: Merton Truck Company

Data Model 101 Model 102

Selling Price 39000 38000


Direct Material 24000 20000
Direct Labor 4000 4500
Variable Overhead 8000 8500

Contribution Constant 3000 5000

Fixed Overhead Per 8600000


Month

Machine-hours: Requirements and `


Availability
Machine Hour required Per hour Total Machine Hour
Available
Department Model 101 Model 102
Engine Assembly 1 2 4000
Metal Stamping 2 2 6000
Model 101 Assembly 2 0 5000
Model 102 Assembly 0 3 4500

Decision Comment
Variables
X1 Number of unites of Model 101 to be
produced per month
X2 Number of unites of Model 102 to be
produced per month
Objective Function Max(Z) = 3000*X1 + 5000 * X2 - 8600000

Constraints Engine X1 + 2*X2 <= 4000


Assembly
Metal 2*X1 + 2*X2 <= 6000
Stamping
Model 101 2*X1 <= 5000
Assembling
Model 102 3*X2 <= 4500
Assembling
The optimal product mix X1 2000

X2 1000

OBJECTIVE (MAX) 2400000

Constraints Inequality RHS

4000 <= 4000

6000 <= 6000

4000 <= 5000

3000 <= 4500

Sensitivity Report: -

Variable Cells

Final Reduced Objective Allowabl Allowabl


e e
Cell Name Valu Cost Coefficient Increase Decrease
e
$F$11 X1 2000 0 3000 2000 500
$F$12 X2 1000 0 5000 1000 2000

Constraints

Final Shadow Constraint Allowabl Allowabl


e e
Cell Name Valu Price R.H. Side Increase Decrease
e
$D$1 X1 + 2*X2 <= 4000 C 4000 2000 4000 500 500
8
$D$1 2*X1 + 2*X2 <= 6000 C 6000 500 6000 500 1000
9
$D$2 2*X1 <= 5000 C 4000 0 5000 1E+30 1000
0
$D$2 3*X2 <= 4500 C 3000 0 4500 1E+30 1500
1

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