Question Details

(solution) Assignment - Linear Programming Kaplan Computers manufactures


Assignment ? Linear Programming

Kaplan Computers manufactures high end computer systems for the graphics design industry.  At the present time, the company makes three computers with the following characteristics:

Computer 1

Computer 2

Computer 3

Unit selling price

$12,000

$11,000

$10,000

Unit variable cost

7,000

8,500

8,000

The manufacture of the computers requires three major activities during their assembly.  There is limited capacity for each resource.  The following table shows the amount of each resource consumed by each computer and  the capacity available of that resource.

Computer 1

Computer 2

Computer 3

Capacity

Resource A

3

4

6

24,000

Resource  B

5

6

2

36,000

Resource C

8

3

2

32,000

Additional resources are available, but need to be purchased in 1,000 unit increments.

Required:

Assume that demand for each product exceeds the capacity available.  Choose a production plan that maximizes contribution.Assume that, for marketing purposes, Kaplan needs to manufacture at least 300 units of each product. Choose a production plan that maximizes contribution. Refer to the situation as describe in part 2.  By how much would the contribution increase if an additional unit of Resource A became available?Refer to the situation as described in part 2.  You can purchase extra units of Resources A, B and C  as follows:

Amount Available

Cost per 1,000 units

Resource A

 In addition to the extra resources available as described in part4, a different supplier has offered to supply an additional 1,000 units of Resource C, at a cost of $750,000. Should Kaplan accept the offer or not?  You must biuy all 1,000 units or none at all.  Provide quantitative support.
BUSI 354

 

Assignment ? Linear Programming

 

Kaplan Computers manufactures high end computer systems for the graphics design industry. At

 

the present time, the company makes three computers with the following characteristics:

 

Unit selling price

 

Unit variable cost Computer 1

 

$12,000

 

7,000 Computer 2

 

$11,000

 

8,500 Computer 3

 

$10,000

 

8,000 The manufacture of the computers requires three major activities during their assembly. There is

 

limited capacity for each resource. The following table shows the amount of each resource

 

consumed by each computer and the capacity available of that resource. Resource A

 

Resource B

 

Resource C Computer 1

 

3

 

5

 

8 Computer 2

 

4

 

6

 

3 Computer 3

 

6

 

2

 

2 Capacity

 

24,000

 

36,000

 

32,000 Additional resources are available, but need to be purchased in 1,000 unit increments.

 

Required:

 

1. Assume that demand for each product exceeds the capacity available. Choose a

 

production plan that maximizes contribution.

 

2. Assume that, for marketing purposes, Kaplan needs to manufacture at least 300 units of

 

each product. Choose a production plan that maximizes contribution.

 

3. Refer to the situation as describe in part 2. By how much would the contribution increase

 

if an additional unit of Resource A became available?

 

4. Refer to the situation as described in part 2. You can purchase extra units of Resources A,

 

B and C as follows: Resource A

 

Resource B

 

Resource C Amount Available

 

3,000

 

2,000

 

1,000 Cost per 1,000 units

 

$22,000

 

$250,000

 

$625,000 How much of each resource should Kaplan acquire? By doing so, what is the incremental

 

contribution that can be obtained? What quantity of each computer will now be made?

 

5. In addition to the extra resources available as described in part4, a different supplier has

 

offered to supply an additional 1,000 units of Resource C, at a cost of $750,000. Should

 

Kaplan accept the offer or not? You must biuy all 1,000 units or none at all. Provide

 

quantitative support.

 


Solution details:

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Sep 13, 2020

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.

Order Now