A drone manufacturer produces 2 types of drones, the multi-rotor (MR), and the single-rotor (SR)....
60.1K
Verified Solution
Link Copied!
Question
Accounting
A drone manufacturer produces 2 types of drones, the multi-rotor (MR), and the single-rotor (SR). The profit margin is $180 per unit for MR drones and $250 per unit for SR drones. One assembly machine is used to produce both models, and it operates for 600 minutes each day. An MR unit needs 15 minutes in the assembly machine, and an SR unit needs 25 minutes. The drones also need to be tested, and are both types are tested on the same machine, which operates for 600 minutes each day. An MR unit requires 10 minutes of testing machine time, and an SR unit needs 15 minutes. The last phase of production is packaging, and both products are packaged on the same packaging machine and both drone types takes 20 minutes to pack. Determine the most profitable daily production plan and answer the following questions using the sensitivity report generated by Excel solver only. You must demonstrate your use of the sensitivity report in your answer. a) If the assembly machine has 650 minutes available instead of 600), how will the optimal solution change? b) If the testing machine has 400 minutes available, by how much will the optimal profit change? c) If the packaging machine has 850 minutes available, by how much will the optimal profit change? Page 1 of 2 d) If the profit margin for MR is $160 per unit, how will the optimal profit change? How will the optimal decision variables change? e) If the profit margin for SR is $350 per unit, how will the optimal solution change? f) The company is also capable of producing a third type of drones, fixed-wing (FW) drones. FW drones needs 12.5 minutes for assembly, 20 minutes for testing and 20 minutes for packaging. Based on your existing information (i.e., without reformulating your optimization model), what is the minimum profit contribution per unit for the FW drones that would incentivize the company to consider producing them in addition to the two existing products? A drone manufacturer produces 2 types of drones, the multi-rotor (MR), and the single-rotor (SR). The profit margin is $180 per unit for MR drones and $250 per unit for SR drones. One assembly machine is used to produce both models, and it operates for 600 minutes each day. An MR unit needs 15 minutes in the assembly machine, and an SR unit needs 25 minutes. The drones also need to be tested, and are both types are tested on the same machine, which operates for 600 minutes each day. An MR unit requires 10 minutes of testing machine time, and an SR unit needs 15 minutes. The last phase of production is packaging, and both products are packaged on the same packaging machine and both drone types takes 20 minutes to pack. Determine the most profitable daily production plan and answer the following questions using the sensitivity report generated by Excel solver only. You must demonstrate your use of the sensitivity report in your answer. a) If the assembly machine has 650 minutes available instead of 600), how will the optimal solution change? b) If the testing machine has 400 minutes available, by how much will the optimal profit change? c) If the packaging machine has 850 minutes available, by how much will the optimal profit change? Page 1 of 2 d) If the profit margin for MR is $160 per unit, how will the optimal profit change? How will the optimal decision variables change? e) If the profit margin for SR is $350 per unit, how will the optimal solution change? f) The company is also capable of producing a third type of drones, fixed-wing (FW) drones. FW drones needs 12.5 minutes for assembly, 20 minutes for testing and 20 minutes for packaging. Based on your existing information (i.e., without reformulating your optimization model), what is the minimum profit contribution per unit for the FW drones that would incentivize the company to consider producing them in addition to the two existing products
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!