# L22-w10 - Outline SILICON CHIP CORPORATION Pricing Out The...

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Unformatted text preview: Outline SILICON CHIP CORPORATION Pricing Out The Fundamental Theorem on Sensitivity Analysis Concrete Products Corp Math 407A: Linear Optimization Lecture 22 Math Dept, University of Washington November 30, 2009 Lecture 22: Math 407A: Linear Optimization Math Dept, University of Washington Outline SILICON CHIP CORPORATION Pricing Out The Fundamental Theorem on Sensitivity Analysis Concrete Products Corp SILICON CHIP CORPORATION Pricing Out The Fundamental Theorem on Sensitivity Analysis Concrete Products Corp Example Lecture 22: Math 407A: Linear Optimization Math Dept, University of Washington Outline SILICON CHIP CORPORATION Pricing Out The Fundamental Theorem on Sensitivity Analysis Concrete Products Corp SILICON CHIP CORPORATION A Silicon Valley firm specializes in making four types of silicon chips for personal computers. Each chip must go through four stages of processing before completion. First the basic silicon wafers are manufactured, second the wafers are laser etched with a micro circuit, next the circuit is laminated onto the chip, and finally the chip is tested and packaged for shipping. The production manager desires to maximize profits during the next month. During the next 30 days she has enough raw material to produce 4000 silicon wafers. Moreover, she has 600 hours of etching time, 900 hours of lamination time, and 700 hours of testing time. Taking into account depreciated capital investment, maintenance costs, and the cost of labor, each raw silicon wafer is worth \$1, each hour of etching time costs \$40, each hour of lamination time costs \$60, and each hour of inspection time costs \$10. The production manager has formulated her problem as a profit maximization Lecture 22: Math 407A: Linear Optimization Math Dept, University of Washington Outline SILICON CHIP CORPORATION Pricing Out The Fundamental Theorem on Sensitivity Analysis Concrete Products Corp SILICON CHIP CORPORATION Initial Tableau x 1 x 2 x 3 x 4 x 5 x 6 x 7 x 8 b raw wafers 100 100 100 100 1 4000 etching 10 10 20 20 1 600 lamination 20 20 30 20 1 900 testing 20 10 30 30 1 700 2000 3000 5000 4000 Opt. Tableau x 1 x 2 x 3 x 4 x 5 x 6 x 7 x 8 b . 5 1 . 015- . 05 25- 5- . 05 1- . 5 50 1- . 02 . 1 10 . 5 1 . 015- . 1 . 05 5- 1500- 5- 100- 50- 145 , 000 Lecture 22: Math 407A: Linear Optimization Math Dept, University of Washington Outline SILICON CHIP CORPORATION Pricing Out The Fundamental Theorem on Sensitivity Analysis Concrete Products Corp Pricing Out New Products We now consider the problem of adding a new product to our product line. Lecture 22: Math 407A: Linear Optimization Math Dept, University of Washington Outline SILICON CHIP CORPORATION Pricing Out The Fundamental Theorem on Sensitivity Analysis Concrete Products Corp Pricing Out New Products We now consider the problem of adding a new product to our product line....
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## This note was uploaded on 12/07/2010 for the course MATH 15909 taught by Professor Jimburker during the Spring '10 term at University of Washington.

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L22-w10 - Outline SILICON CHIP CORPORATION Pricing Out The...

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