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1 Linear Programming Assignment #1 (Group Assignment)DSC 477/577 Please provide a mathematical (algebraic) formulation for each problem along with a solution using the Excel Solver. Please submit a hard copy of your excel solver spread sheet and also email the file for the solver solution. The mathematical formulation should clearly provide notation and a descriptive statement for decision variables, objective function, and constraints. Problem #1 (Make-Buy Decisions) Electro-Poly Corporation is the world’s leading manufacturer of slip rings. A slip ring is an electrical coupling device that allows current to pass through a spinning or rotating connection. The company recently received a $750,000 order for various quantities of three types of slip rings. Each slip ring requires a certain amount of time to wire and harness. The following table summarizes the requirements for three models of slip rings. Model 1 Model 2 Model 3 Number ordered 3,000 2,000 900 Hours of wiring required per unit 2 1.5 3 Hours of harnessing required per unit 1 2 1 Unfortunately, Electro-Poly does not have enough wiring and harnessing capacity to fill the order by its due date. The company only has 10,000 hours of wiring capacity and 5,000 hours of harnessing capacity available to devote to the order. However, the company can contract any portion of this order to a subcontractor. The unit costsof producing each model in-house and buying the finished product from a subcontractor are summarized below. Model 1 Model 2 Model 3 Cost to Make $50 $83 $130 Cost to Buy $61 $97 $145 Electro-Poly wants to determine the number of slip rings to make and the number to buy in order to fill the customer order at the least possible cost.
2 Problem #1 (Make-Buy Decisions) Solution Decision Variables: ?