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    Merton Truck-Self

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    spaw1108
    - Merton Truck Company produces two truck models, Model 101 and Model 102. - The document provides machine hour requirements and availability for different production departments. - It also provides the standard product costs and selling prices for each model.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd

    Merton Truck-Self

    Uploaded by

    spaw1108
    572 views14 pages
    - Merton Truck Company produces two truck models, Model 101 and Model 102. - The document provides machine hour requirements and availability for different production departments. - It also provides the standard product costs and selling prices for each model.

    Original Description:

    merton truck solution

    Original Title

    Merton Truck-self.xlsx

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    © Attribution Non-Commercial (BY-NC)

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    XLSX, PDF, TXT or read online from Scribd

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    - Merton Truck Company produces two truck models, Model 101 and Model 102. - The document provides machine hour requirements and availability for different production departments. - It also provides the standard product costs and selling prices for each model.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    572 views14 pages

    Merton Truck-Self

    Uploaded by

    spaw1108
    - Merton Truck Company produces two truck models, Model 101 and Model 102. - The document provides machine hour requirements and availability for different production departments. - It also provides the standard product costs and selling prices for each model.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 14

    Merton Truck Company TABLE A Machine-hours: Requirements and availability Machine-hours Required per Truck Model 101 Model

    102 1.0 2.0 2.0 $ 39,000 $ 2.0 2.0 3.0 38,000

    Department Engine assembly Metal stamping Model 101 assembly Model 102 assembly Selling Price TABLE B Standard Product Costs Direct materials Direct Labour Engine assembly Metal stamping Final assembly Overhead Engine assembly Metal stamping Final assembly Total

    Total machine-hours Available per Month 4,000 6,000 5,000 4,500

    Model 101 $24,000 $1,200 $800 $2,000 $4,000 $2,525 $3,480 $6,200 $12,205 $40,205 $4,850 $3,080 $3,500 $2,400 $600 $1,500

    Model 102 $20,000

    $4,500

    $11,430 $35,930

    Q1.(a)

    Contribution of Model 101 3000 Contribution of Model 102 5000 Model 101 Model 102 Objective function Max 3000 5000 11000000 Decision Variables 2000 1000 Constraints Hrs req./unit Hrs used Engine assembly 1 2.0 4000 Metal stamping 2 2.0 6000 Model 101 assembly 2 0.0 4000 Model 102 assembly 0 3.0 3000

    <= <= <= <=

    Max Hrs Available 4000 6000 5000 4500

    Q1.(b) Objective function Max Decision Variables Constraints Engine assembly Metal stamping Model 101 assembly Model 102 assembly Q1.(c)

    Model 101 Model 102 3000 5000 11002000 1999 1001 Hrs req./unit Hrs used 1 2.0 4001 2 2.0 6000 2 0.0 3998 0 3.0 3003

    <= <= <= <=

    Max Hrs Available 4001 6000 5000 4500

    Model 101 Model 102 Objective function Max 3000 5000 11200000 Decision Variables 1900 1100 Constraints Hrs req./unit Hrs used Engine assembly 1 2.0 4100 Metal stamping 2 2.0 6000 Model 101 assembly 2 0.0 3800 Model 102 assembly 0 3.0 3300 Model 101 Model 102 3000 5000 12000000 1500 1500 Hrs req./unit Hrs used 1 2.0 4500 2 2.0 6000 2 0.0 3000 0 3.0 4500

    <= <= <= <=

    Max Hrs Available 4100 6000 5000 4500

    Q1.(d) Objective function Max Decision Variables Constraints Engine assembly Metal stamping Model 101 assembly Model 102 assembly

    <= <= <= <=

    Max Hrs Available 4501 6000 5000 4500

    Unsed Hrs 0 0 1000 1500

    Unsed Hrs 0 0 1002 1497

    Unsed Hrs 0 0 1200 1200

    Unsed Hrs 1 0 2000 0

    Q2. Objective function Max Decision Variables Constraints Engine assembly Metal stamping Model 101 assembly Model 102 assembly

    Model 101 Model 102 3000 5000 12000000 1500 1500 Hrs req./unit Hrs used 1 2.0 4500 2 2.0 6000 2 0.0 3000 0 3.0 4500

    Max Hrs Available <= <= <= <= 6000 5000 4500

    Max machine hrs rented

    500.0

    Unsed Hrs 0 2000 0

    Microsoft Excel 12.0 Answer Report Worksheet: [Book1]Sheet4 Report Created: 06-10-2013 01:59:20

    Target Cell (Max) Cell Name $G$4 Objective function Max

    Original Value 11000000

    Final Value 11000000

    Adjustable Cells Cell Name $D$5 Decision Variables Model 101 $E$5 Decision Variables Model 102 $F$5 Decision Variables Model 103

    Original Value 2000 1000 0

    Final Value 2000 1000 0

    Constraints Cell Name $G$7 Engine assembly Hrs used $G$8 Metal stamping Hrs used $G$9 Model 101 assembly Hrs used $G$10 Model 102 assembly Hrs used

    Cell Value 4000 6000 4000 3000

    Formula $G$7<=$I$7 $G$8<=$I$8 $G$9<=$I$9 $G$10<=$I$10

    Status Slack Binding 0 Binding 0 Not Binding 1000 Not Binding 1500

    Microsoft Excel 12.0 Sensitivity Report Worksheet: [Book1]Sheet4 Report Created: 06-10-2013 01:59:20

    Adjustable Cells Cell $D$5 $E$5 $F$5 Name Decision Variables Model 101 Decision Variables Model 102 Decision Variables Model 103 Final Reduced Objective Allowable Allowable Value Cost Coefficient Increase Decrease 2000 0 3000 2000 499.9999999 1000 0 5000 1000 2000 0 -350 2000 350 1E+30

    Constraints Cell $G$7 $G$8 $G$9 $G$10 Name Engine assembly Hrs used Metal stamping Hrs used Model 101 assembly Hrs used Model 102 assembly Hrs used Final Shadow Constraint Allowable Value Price R.H. Side Increase 4000 2000 4000 500 6000 500 6000 500 4000 0 5000 1E+30 3000 0 4500 1E+30 Allowable Decrease 500 1000 1000 1500

    Microsoft Excel 12.0 Limits Report Worksheet: [Book1]Limits Report 1 Report Created: 06-10-2013 01:59:20

    Target Cell Name $G$4 Objective function Max

    Value 11000000

    Adjustable Cell Name $D$5 Decision Variables Model 101 $E$5 Decision Variables Model 102 $F$5 Decision Variables Model 103

    Value 2000 1000 0

    Lower Target Limit Result 0 5000000 0 6000000 0 11000000

    Upper Target Limit Result 2000.000005 11000000.02 1000.000003 11000000.01 0 11000000

    Q3.(a) Objective function Max Decision Variables Constraints Engine assembly Metal stamping Model 101 assembly Model 102 assembly

    Model 101 Model 102 Model 103 3000 5000 2000 11000000 2000 1000 0 Hrs req./unit Hrs used 1 2.0 0.8 4000 2 2.0 1.5 6000 2 0.0 1.0 4000 0 3.0 0.0 3000

    <= <= <= <=

    Max Hrs Available 4000 6000 5000 4500

    Hence, they should not preoduce 103 Trucks Q3.(b) The contribution of each Model 103 truck has to be increased by $350(See worksheet 3b) before it becomes Model 101 Model 102 Model 103 3000 5000 2350 11000000 2000 1000 0 Hrs req./unit Hrs used 1 2.0 0.8 4000 2 2.0 1.5 6000 2 0.0 1.0 4000 0 3.0 0.0 3000

    Objective function Max Decision Variables Constraints Engine assembly Metal stamping Model 101 assembly Model 102 assembly

    <= <= <= <=

    Max Hrs Available 4000 6000 5000 4500

    Objective function Max Decision Variables Constraints Engine assembly Metal stamping Model 101 assembly Model 102 assembly

    Model 101 Model 102 Model 103 3000 5000 2351 11002840 12 858 2840 Hrs req./unit Hrs used 1 2.0 0.8 4000 2 2.0 1.5 6000 2 0.0 1.0 2864 0 3.0 0.0 2574

    <= <= <= <=

    Max Hrs Available 4000 6000 5000 4500

    Unsed Hrs 0 0 1000 1500

    t 3b) before it becomes worthwhile to produce any unit

    Unsed Hrs 0 0 1000 1500

    Unsed Hrs 0 0 2136 1926

    Q4. Objective function Max Decision Variables Constraints Engine assembly Metal stamping Model 101 assembly Model 102 assembly

    Model 101 Model 102 3000 5000 12000000 1500 1500 Hrs req./unit Hrs used 1 2.0 4500 2 2.0 6000 2 0.0 3000 0 3.0 4500

    Net Profit

    1750000

    <= <= <= <=

    Max Hrs Available 6000 6000 5000 4500

    Cost of overtime in engine assembly

    1800

    Overtime is not advisable Since operating overtime reduces the profits(earlier net profit was 2,400,000 now it has reduced to 1,750,000

    Alternative Method Objective function Max Decision Variables Constraints Engine assembly Metal stamping Model 101 assembly Model 102 assembly Model 101 Model 102 3000 5000 1500 1250 Hrs req./unit 1 2.0 2 2.0 2 0.0 0 3.0 Overtime 2400 3800 11700000 0 250 Hrs used 4000 2 2.0 6000 2 0.0 3000 0 3.0 4500 1 2.0 500

    Unsed Hrs 1500 0 2000 0

    Net increase in Contribution Monthly overtime cost Hence not worth to go for overtime

    700000 750000

    now it has reduced to 1,750,000)

    Net Profit

    2350000

    <= <= <= <=

    Max Hrs Available 4000 6000 5000 4500 2000

    Unsed Hrs 0 0 2000 0 1500

    Q5. Objective function Max Decision Variables Constraints Engine assembly Metal stamping Model 101 assembly Model 102 assembly Additional constraint

    Model 101 Model 102 3000 5000 10500000 2250 750 Hrs req./unit Hrs used 1 2.0 3750 2 2.0 6000 2 0.0 4500 0 3.0 2250 1 3.0 0

    <= <= <= <=

    Max Hrs Available 4000 6000 5000 4500

    Unsed Hrs 250 0 500 2250

    Objective function Max Decision Variables Constraints Engine assembly Metal stamping Model 101 assembly Model 102 assembly Additional constraint

    Model 101 Model 102 3000 5000 11000000 2000 1000 Hrs req./unit Hrs used 1 2.0 4000 2 2.0 6000 2 0.0 4000 0 3.0 3000 1 -2.0 0 NO CHANGE

    <= <= <= <=

    Max Hrs Available 4000 6000 5000 4500

    Unsed Hrs 0 0 1000 1500

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