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Extreme Downhill Co'

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Michele Taggart needs to decide how many sets of skis and how many snowboards to make this week. ... 100 snowboards take up one cubic meter, and 100 sets of ... – PowerPoint PPT presentation

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Title: Extreme Downhill Co'


1
Extreme Downhill Co.
2
Solving the Problem
1. Define the choices to be made by the manager
(called decision variables). 2. Find a
mathematical expression for the manager's goal
(called the objective function). 3. Find
expressions for the things that restrict the
manager's range of choices (called
constraints). 4. Use algebra to find the best
solution.
3
Step 1
Define the choices to be made by the manager
(called decision variables).
4
Michele Taggart needs to decide how many sets of
skis and how many snowboards to make this week.
5
What Are the Decision Variables?
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Step 2
Find a mathematical expression for the manager's
goal (called the objective function).
9
EDC makes 40 for every snowboard it sells, and
60 for every pair of skis. Michele wants to make
sure she chooses the right mix of the two
products so as to make the most money for her
company.
10
What Is the Objective?
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Step 3
Find expressions for the things that restrict the
manager's range of choices (called constraints).
13
Molding Machine Constraint
The molding machine takes three hours to make 100
pairs of skis, or it can make 100 snowboards in
two hours, and the molding machine is only
running 115.5 hours every week. So the total
number of hours spent molding skis and snowboards
cannot exceed 115.5.
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Molding Machine Constraint
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Cutting Machine Constraint
Michele only gets to use the cutting machine 51
hours per week. The cutting machine can process
100 pairs of skis in an hour, or it can do 100
snowboards in three hours.
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Cutting Machine Constraint
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Delivery Van Constraint
There isn't any point in making more products in
a week than can fit into the van The van has a
capacity of 48 cubic meters. 100 snowboards take
up one cubic meter, and 100 sets of skis take up
two cubic meters.
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Delivery Van Constraint
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Demand Constraint
Michele has decided that she will never make more
than 1,600 snowboards per week, because she won't
be able to sell any more than that.
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Demand Constraint
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Non-negativity Constraints
Michele can't make a negative number of either
product.
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Non-negativity Constraints
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Step 4
Use algebra to find the best solution.
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Calculating Profits
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The Optimal Solution
  • Make 1,860 sets of skis and 1,080 snowboards.
  • Earn 154,800 profit.

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Thank you for your attention!
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