An automobile manufacturer wants to award contracts for the supply of four different fuel injection system components. Four contracts have submitted bids on the components; the Table below summarizes the prices bid per unit. Where no entry is made, the contractor submitted no bid. Component Contractor 1 2 3 4 1 $25 - $30 $40 2 $28 $80 $28 - 3 - $75 $33 - 4 $30 $82 - $42 Demand (units) 15,000 30,000 10,000 20,000 The demand for a component does not have to be supplied completely by one contractor. In fact, certain contractors have indicated maximum quantities that can be supplied at the bid price. Contractor 1 can supply no more than 18,000 of item 4, contractor 2 no more than 3,000 of item 1, contractor 4 no more than 15,000 units of item 2 and no more than 5,000 of item 4. There is no provision that awards must go to the low bidder. The automobile manufacturer wants to determine how many units of each item should be awarded to each contractor so as to minimize total costs for the four items. Contractor 4 has specified that it requires a minimum award of $500,000 if it is to supply any items at all. The automobile manufacturer wishes to avoid awarding over $1.2 million in awards to any one company. Formulate the LP model that can solve this problem. Would you say that divisibility is a practical problem here? Explain. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 30P

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An automobile manufacturer wants to award contracts for the supply of four different fuel injection system components. Four contracts have submitted bids on the components; the Table below summarizes the prices bid per unit. Where no entry is made, the contractor submitted no bid.

	Component
Contractor	1	2	3	4
1	$25	-	$30	$40
2	$28	$80	$28	-
3	-	$75	$33	-
4	$30	$82	-	$42
Demand (units)	15,000	30,000	10,000	20,000

The demand for a component does not have to be supplied completely by one contractor. In fact, certain contractors have indicated maximum quantities that can be supplied at the bid price. Contractor 1 can supply no more than 18,000 of item 4, contractor 2 no more than 3,000 of item 1, contractor 4 no more than 15,000 units of item 2 and no more than 5,000 of item 4.

There is no provision that awards must go to the low bidder. The automobile manufacturer wants to determine how many units of each item should be awarded to each contractor so as to minimize total costs for the four items. Contractor 4 has specified that it requires a minimum award of $500,000 if it is to supply any items at all. The automobile manufacturer wishes to avoid awarding over $1.2 million in awards to any one company.

Formulate the LP model that can solve this problem. Would you say that divisibility is a practical problem here? Explain.

Note:-

Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.

You will get up vote for sure.

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