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page%2083 - lo Solution S 0'Kl Did not TA 8 L E 19[Just...

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Unformatted text preview: lo Solution S 0 'Kl- Did. not TA 8 L E 19 [Just Inlttmalian fer Sealeenrl lane Eecertler Harlin Selling price $100 $90 Labor cost 52; 50 $.35 Raw material cost ' TA B L E ”g 3 Batance Sheet fur Semluunrl assets itaailitées Cash 3810.000 Accounts receivable; S 3.000 Inventory outstanding” ft"; 7,000 Bank loan " 10.000 ‘Accounts receivable is money owed to Semécond by customers who have previormly purcl‘u:sed Semicond products. "Value of December ]. 2002. inventory L 30( E00) 4|- an: 100) -: 57.000. be received untrivl-"ebi'uary l. 2003. During December. Semicond will collect. $2,000 in accounts receivable, and Semicond must pay off $1000 of the outstanding ioan and a monthly rent of SLOUO. On January 1. 2003. Semicond will receive a shipmeat ol‘ raw material worth $2,000 which will be paid for on February I. 2003. Semicond‘s manage- meet has decided that the cash balance on .ianuary l, 2003. must be at least $4.000. Atso, Semiconds bank requires that the current ratio at the beginning ol" .lanuary be at least 2. To maximize the contribution to profit from December production. (revenues to be rew ceived) — (variable production costs). what should Semicond produce during December? Semicond must. determine how many tape recorders and radios should be produced dur- ing December. Thus. we define .rE 2 number o! tape recorders produced during December .r; : number ol‘ radios produced during December To express Semicond’s objective Function~ note that Contribution to protrl : 100 m 50 _ 3U _ $20 [ape recorder W11 : [)0 iiiiiiii 35 i 40 .‘.‘.‘.‘.‘.: ‘5 Radio As in the Giapetto example. this leads to the objective function max :- : 20X] *t- 15x; {33} Semicond laces the foilowing constraints: Eenstraint 1 Because of" limited availability of raw material. at most l00 tape recorders can be produced during December. finnstraiat 2 Because of limited availability of raw material. at most [00 radios can be produced during December. 3 . 7 Strait-term Financial Ptannieg 83 ...
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