CASE STUDY 2: MEXICANA WIRE WORKS Question 1 The Objeti!e is to M"#i$i%e &'o(t Given information:
&'o)ut
M"te'i"*
+"bou'
O!e'he" ) $23.10
Tot"* Cost $ 66
$ 33 $ 9 .9 0 W--./C 0" $ 25 $ 7 .5 0 $17.50 $ 50 W--C 0b $ 35 $10.50 $24.50 $7 0 W---/X 0 $ 75 $11.25 $63.75 $1 5 0 W---.X 0) Maximize Profit (P) = 34a+30b+60c+25d (initial equation)
Se**in, &'ie $ 10 0
&'o(t
$8 0
$ 30
$1 30
$ 60
$1 75
$ 25
$ 34
After adu!tin" to limitation!# !ubect to t$e con!traint!# a+2b+d
%=4000
(drawing)
a+b+4c+d %=4200
(extrusion)
a+3b
(winding)
%=2000
a+ 3c+2d %=2300
(packaging)
a &= '50 d &= 600
(key customer )
a %= '400 b %= 250 c %= '5'0 d %= '''6
(April Order) (April Order) (April Order) (April Order)
Wh"t 'eo$$en)"tion shou*) Ron 3"'i" $"4e "n) 5ith 5h"t justi("tion6 justi("tion6 Maximum prot before tain! into a""ount or#er "ontraint% $74&000 'refer to (M printout) *+e initia, u!!etion for maximum prot prot -ou,# be to pro#u"e pro#u"e 2&000 unit of W--./C an# 100 unit of W---/X7 o-ever& t+i initia, u!!etion #oe not tain! into a""ount "ontraint of or#er from 2 e/ "utomer.
*+erefore& t+e re"ommen#ation i to pro#u"e t+e fo,,o-in! uantitie of pro#u"t to a"+ieve maximum prot for t+e "ompan/ an# atie a,, "ontraint at t+e ame time 'p,eae refer to (M printout):
Maximum prot after tain! into a""ount or#er "ontraint& !iven:
a &= '50 d &= 600
(key customer)
0075 % 1100 unit ' % 150) 0033 % 300 unit 0005 % 0 unit 0007 % 600 unit ' %600)
Maximum rot % 1100 '$34) 300 '$30) 600 '$25) %$61&400
*+e pa"a!in! an# -in#in! +our -i,, be fu,,/ uti,ie#& but t+e remainin! +our of #ra-in! an# extruion -i,, not be fu,,/ uti,ie#.
2. i"u t+e nee# for temporar/ -orer in t+e #ra-in! #epartment. ##itiona, temporar/ -orer are not reuire# in t+e #ra-in! #epartment& in"e t+e ,abour +our are un#eruti,ie# #ue to ,a" of -in#in! an# pa"a!in! +our. ntea#& it i re"ommen#e# t+at t+e "ompan/ +ire extra -orer for bot+ - in#in! an# pa"a!in! #epartment.
3. i"u t+e p,an ,a/out *+e p,an ,a/out +ou,# be in t+e or#er of t+e pro"e to enure moot+ pro#u"tion pro"e. *+e u!!ete# pro"e euen"e: #ra-in! ; extruion ; -in#in! ; inpe"tion ; pa"a!in!. fter t+e inpe"tion !oo# t+at pa t+e (ua,it/ +e" -i,, be pa"a!e# an# ent to t+e tora!e area. efe"tive pro#u"t -i,, be tore# eparate,/ unti, it "an be re-ore#.
,eae refer to t+e next pa!e for t+e u!!ete# <= ,a/out.
