Photon Technologies, Inc., a manufacturer of batteries for mobile phones, signed a contract with a large...

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Photon Technologies, Inc., a manufacturer of batteries formobile phones, signed a contract with a large electronicsmanufacturer to produce three models of lithium-ion battery packsfor a new line of phones. The contract calls for the following:

Battery PackProduction Quantity
PT-100200,000
PT-200100,000
PT-300150,000

Photon Technologies can manufacture the battery packs atmanufacturing plants located in the Philippines and Mexico. Theunit cost of the battery packs differs at the two plants because ofdifferences in production equipment and wage rates. The unit costsfor each battery pack at each manufacturing plant are asfollows:

Plant
ProductPhilippinesMexico
PT-100$0.95$0.98
PT-200$0.98$1.06
PT-300$1.34$1.15

The PT-100 and PT-200 battery packs are produced using similarproduction equipment available at both plants. However, each planthas a limited capacity for the total number of PT-100 and PT-200battery packs produced. The combined PT-100 and PT-200 productioncapacities are 175,000 units at the Philippines plant and 160,000units at the Mexico plant. The PT-300 production capacities are75,000 units at the Philippines plant and 100,000 units at theMexico plant. The cost of shipping from the Philippines plant is$0.18 per unit, and the cost of shipping from the Mexico plant is$0.12 per unit.

(a)Develop a linear program that Photon Technologies can use todetermine how many units of each battery pack to produce at eachplant to minimize the total production and shipping cost associatedwith the new contract.
LetP1=number of PT-100 battery packs produced at the Philippinesplant
P2=number of PT-200 battery packs produced at the Philippinesplant
P3=number of PT-300 battery packs produced at the Philippinesplant
M1=number of PT-100 battery packs produced at the Mexicoplant
M2=number of PT-200 battery packs produced at the Mexicoplant
M3=number of PT-300 battery packs produced at the Mexicoplant
MinP1+P2+P3+M1+M2+M3
s.t.
P1+P2+P3+M1+M2+M3=Production PT-100
P1+P2+P3+M1+M2+M3=Production PT-200
P1+P2+P3+M1+M2+M3=Production PT-300
P1+P2+P3+M1+M2+M3?Capacity Phi PT-100 & 200
P1+P2+P3+M1+M2+M3?Capacity Mex PT-100 & 200
P1+P2+P3+M1+M2+M3?Capacity Phi PT-300
P1+P2+P3+M1+M2+M3?Capacity Mex PT-300
P1, P2, P3, M1, M2, M3 ? 0
(b)Solve the linear program developed in part (a), to determinethe optimal production plan.
Qty Produced
PhillipinesMexico
PT-100
PT-200
PT-300
Total Cost = $
(c)Use sensitivity analysis to determine how much the productionand/or shipping cost per unit would have to change to produceadditional units of the PT-100 in the Philippines plant.
If required, round your answer to two decimal digits.
At least $  / unit.
(d)Use sensitivity analysis to determine how much the productionand/or shipping cost per unit would have to change to produceadditional units of the PT-200 in the Mexico plant.
If required, round your answer to two decimal digits.
At least $  / unit.

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Transcribed Image Text

Photon Technologies, Inc., a manufacturer of batteries formobile phones, signed a contract with a large electronicsmanufacturer to produce three models of lithium-ion battery packsfor a new line of phones. The contract calls for the following:Battery PackProduction QuantityPT-100200,000PT-200100,000PT-300150,000Photon Technologies can manufacture the battery packs atmanufacturing plants located in the Philippines and Mexico. Theunit cost of the battery packs differs at the two plants because ofdifferences in production equipment and wage rates. The unit costsfor each battery pack at each manufacturing plant are asfollows:PlantProductPhilippinesMexicoPT-100$0.95$0.98PT-200$0.98$1.06PT-300$1.34$1.15The PT-100 and PT-200 battery packs are produced using similarproduction equipment available at both plants. However, each planthas a limited capacity for the total number of PT-100 and PT-200battery packs produced. The combined PT-100 and PT-200 productioncapacities are 175,000 units at the Philippines plant and 160,000units at the Mexico plant. The PT-300 production capacities are75,000 units at the Philippines plant and 100,000 units at theMexico plant. The cost of shipping from the Philippines plant is$0.18 per unit, and the cost of shipping from the Mexico plant is$0.12 per unit.(a)Develop a linear program that Photon Technologies can use todetermine how many units of each battery pack to produce at eachplant to minimize the total production and shipping cost associatedwith the new contract.LetP1=number of PT-100 battery packs produced at the PhilippinesplantP2=number of PT-200 battery packs produced at the PhilippinesplantP3=number of PT-300 battery packs produced at the PhilippinesplantM1=number of PT-100 battery packs produced at the MexicoplantM2=number of PT-200 battery packs produced at the MexicoplantM3=number of PT-300 battery packs produced at the MexicoplantMinP1+P2+P3+M1+M2+M3s.t.P1+P2+P3+M1+M2+M3=Production PT-100P1+P2+P3+M1+M2+M3=Production PT-200P1+P2+P3+M1+M2+M3=Production PT-300P1+P2+P3+M1+M2+M3?Capacity Phi PT-100 & 200P1+P2+P3+M1+M2+M3?Capacity Mex PT-100 & 200P1+P2+P3+M1+M2+M3?Capacity Phi PT-300P1+P2+P3+M1+M2+M3?Capacity Mex PT-300P1, P2, P3, M1, M2, M3 ? 0(b)Solve the linear program developed in part (a), to determinethe optimal production plan.Qty ProducedPhillipinesMexicoPT-100PT-200PT-300Total Cost = $(c)Use sensitivity analysis to determine how much the productionand/or shipping cost per unit would have to change to produceadditional units of the PT-100 in the Philippines plant.If required, round your answer to two decimal digits.At least $  / unit.(d)Use sensitivity analysis to determine how much the productionand/or shipping cost per unit would have to change to produceadditional units of the PT-200 in the Mexico plant.If required, round your answer to two decimal digits.At least $  / unit.

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