Mexicana Wire Winding Winding Inc. is a producer of wire winding used in making electrical transformer. Production process involves drawing, extrusion, winding, inspection and packaging
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This company is booking more orders than they can fill
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They will expand the plant capacity later but it will not help them in April
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The company wants the optimum profit for the month of April using their limited capacity and resources April orders:
------------------------------------------------------------ --------------------Product duct W007 075C 5C 14 1400 00 units its Produ Product ct W0033C W0033C 250 units units Product duct W000 005X 5X 15 1510 10 units its Product duct W000 007X 7X 11 1116 16 units its -----------------------------------------
Identified Problem: •
Booking orders > production using present capacity
Objective function and constraints: Objective Function: Maximum Profit We assume – To make the optimum profit by satisfying the limitations, total units of Product W0075C = X1 Product W0033C = X2 Product W0005X = X3 Product W0007X = X4 Assume that X1, X2, X3, X4 >=0
Profit for product X1 per unit = 34 Profit for product X2 per unit = 30 Profit for product X 3 per unit = 60 Profit for product X4 per unit = 25
Total Maximum Maxi mum Profit: Profit : 34X1+30X2+60X3+25X4 Equation developed using the constraints: Drawing constraint 1X1+2X2+0X3+1X4 <=4000 Extrusion constraint 1X1+1X2+4X3+1X4 <=4200
1. What recommendation should Ron Garcia make with what justification? In April, they following quantities of product should be produced to achieve optimum profit which will satisfy all limitations. W0075C W0033C W0005X W0007X
= 1100 units (which is >= 150) = 250 units = 0 units = 600 units (which is >=600)
Optimum Profit = US $ 59900 Since packaging hours will be utilized fully, the remaining hours of drawing and extrusion will be unused.
2. Discuss the need for temporary workers in the drawing department. department. There is no use of hiring the temporary workers in the drawing department, because hours for drawing are un-utilized due to lack of winding and packaging hours. If we don’t have sufficient packaging hours to proceed the product after drawing and extrusion, the finished product will not be come out for delivery. delivery.
3. Discuss the plan layout Sequence: drawing extrusion winding inspection packaging. After inspection good products is packaged and sent to finished product storage. Defective product is stored separately until it can be reworked.
