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1) Nucor a manufacturing company has received orders for 80 metal lockers, 75 desks, 200 Shelves...

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General Management

1) Nucor a manufacturing company has received orders for 80metal lockers, 75 desks, 200 Shelves and 25 TV stands for the monthof August. Nucor sells metal lockers for $90 each, shelves for $150each, TV stands for $65 each and desks for $95 each.

Nucor has the option of manufacturing these products in house orpurchasing them from an outside supplier. The associated costs aregiven below

Product

Cost if Manufactured

Cost if purchased

Locker

75

80

Shelf

125

140

TV stand

30

45

Desk

48

62

The company has three types of welding machines: 10 type P, 6type Q and 5 type R.

Type P machines can complete 5 jobs/month, Q machines cancomplete 10 jobs/month and R machines can complete 11 jobs/month.Machine type Q and R can be used to weld lockers and desks. Machinetype P and Q can be used to weld shelves and TV stands.

The number of lockers purchased cannot exceed the number oflockers manufactures

The number of desks manufactured must be no more than twice thenumber of shelves manufactured

At least 30% of the TV stands must be manufactured.

The total number of goods purchased must be within 25% of thetotal number of goods manufactured.

Formulate a Linear Programming model that will maximize profitfor Nucor.

Answer & Explanation Solved by verified expert
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LP ModelProductMonthly DemandCost if ManufacturedCost if purchasedSelling    See Answer
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