Introduction to mathematical programming
4th Edition
ISBN: 9780534359645
Author: Jeffrey B. Goldberg
Publisher: Cengage Learning
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The WIX Company Civil Engineers consists of two divisions. The divisions are Water and Waste Water. The company sells engineering services to various customers. The following are the bill rates for the various staff classifications:
Vice President $200/hour
Senior Engineer $180/hour
Staff Engineer $150/hour.
The two divisions expect to bill the following hours:
Water- 10000 hours, vice president at 10% of the time, 30% of Senior Engineer time and remaining to Staff Engineers.
Waste Water- 6000 hours, vice president at 20% of the time, 20% of Senior Engineer time and remaining to Staff Engineers.
The Direct Labor costs per hours are as follows:
Vice President $80/hour
Senior Engineer $60/hour
Staff Engineer $40/hour.
The utilization for each staff members are as follows:
Vice President 60%
Senior Engineer 80%
Staff Engineer 90%.
The company has the following other costs:
Admin Salaries $90,000
Rent $100,000
Utilities $6,000
Benefits $76,000
Assume 20% of time for each staff member…
Problem 3: Location Selection for EXP Logistics
EXP logistics is a third party logistic company that operates several distribution centers at multiple
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Site
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3
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5
6
7
8
Mega Warehouse NPV Regular Warehous NPV Other Sites within 20
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A company manufactures 3 products in 2 different factories. The cost of production and time required for production for each product varies depending on which factory produces it.
The time and cost required for production of each product in each factory is provided in the tables in this worksheet.
Demand for products 1, 2 and 3 are 200, 240 and 100 units, respectively.
There are a total of 3,000 hours available in each factory.
Additionally, at least 60% of the total units of Product 1 must be produced in Factory A, and at least 40% of of the total units of Product 2 must be produced in Factory B.
Create a linear programming model and use the Solver add-in to determine the optimal production plan that will minimize total cost.
Note: The cost is per unit not per hour. All demand must be met.
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Introduction to mathematical programming
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