You create your own start-up company that supply bowl directly to a number of customers. You receive a number of tentative orders and you now have to tell your customers which orders you are going to take. Before embarking on this journey, you first want to allocate your production capabilities in order to devise a feasible daily production plan that maximizes your profit. There are only three different grades of bowls that you order at this early stage of the company: Bowl #1, Bowl #2 and Bowl #3. Each type of bowl has to be processed, packaged and delivered. Each operation is run by yourself. Since your company only operates for 8 hours per day, the total number of available bowl processing hours is 4, the total number of packaging hours is 2, and the total number of delivery hours is 2. Processing 10 units of Bowl #1 requires 1 hour of time, packaging is done at the rate of 20 units per hour, and delivery at the rate of 30 units per hour. The cost of the raw materials for 1 unit is $10, and each unit can be sold for $70. Bowl #2 takes more time to prepare: in one hour, the company can only process 5 units. Packaging is done at the rate of 15 units per hour and 15 units can be delivered in one hour. The cost of the raw materials for 1 unit is $20, and it can be sold for $120. Finally, Bowl #3 can be processed at the rate of 15 units per hour, it can be packaged at the rate of 25 units per hour, and delivered at the rate of 30 units per hour. Bowl #3 is very inexpensive and one unit only costs $5 in raw materials, and can be sold for $50. Customers expressed interest in having the following products delivered every day: 20 units of Bowl #1, 10 units of Bowl #2, and 30 units of Bowl #3. Devise a feasible daily production plan that maximizes your profit by using MS Excel Solver. Formulate the objective function and constraints involved in this question
You create your own start-up company that supply bowl directly to a number of customers. You receive a number of tentative orders and you now have to tell your customers which orders you are going to take. Before embarking on this journey, you first want to allocate your production capabilities in order to devise a feasible daily production plan that maximizes your profit.
There are only three different grades of bowls that you order at this early stage of the company: Bowl #1, Bowl #2 and Bowl #3.
Each type of bowl has to be processed, packaged and delivered. Each operation is run by yourself. Since your company only operates for 8 hours per day, the total number of available bowl processing hours is 4, the total number of packaging hours is 2, and the total number of delivery hours is 2.
Processing 10 units of Bowl #1 requires 1 hour of time, packaging is done at the rate of 20 units per hour, and delivery at the rate of 30 units per hour. The cost of the raw materials for 1 unit is $10, and each unit can be sold for $70.
Bowl #2 takes more time to prepare: in one hour, the company can only process 5 units. Packaging is done at the rate of 15 units per hour and 15 units can be delivered in one hour. The cost of the raw materials for 1 unit is $20, and it can be sold for $120.
Finally, Bowl #3 can be processed at the rate of 15 units per hour, it can be packaged at the rate of 25 units per hour, and delivered at the rate of 30 units per hour. Bowl #3 is very inexpensive and one unit only costs $5 in raw materials, and can be sold for $50. Customers expressed interest in having the following products delivered every day: 20 units of Bowl #1, 10 units of Bowl #2, and 30 units of Bowl #3.
Devise a feasible daily production plan that maximizes your profit by using MS Excel Solver.
Formulate the objective function and constraints involved in this question.
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