Problems_Sheet_Final_Review

# Problems_Sheet_Final_Review - BDM Problem Sheet 1 MKS inc...

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BDM - Problem Sheet 1) MKS inc manufactures and sells bikes in 3 different markets across Canada (Ottawa, Calgary and Vancouver). Through market research they have determined the following revenues and costs in each market: Ottawa Sale Price = \$300/unit Manufacturing Cost = \$125/unit Shipping Cost = \$44/Unit Calgary Sale Price = \$400/unit Manufacturing Cost = \$125/unit Shipping Cost = \$125/Unit Montreal Sale Price = \$450/unit Manufacturing Cost = \$125/unit Shipping Cost = \$88/Unit MKS currently owns manufacturing plant A in eastern Canada that they can use to manufacture bikes. MKS Inc would like to know how may bikes to ship to each location in order to maximize profit. a) Define the variables b) Define the optimization function c) MKS has a shipping budget of \$25,000, write this constraint d) MKS wants to make sure that exactly twice as many bikes are sent to Calgary as are sent to Ottawa, write this constraint e) No more then 100 units can be shipped to Montreal, write this constraint f) MKS does not want the total costs of selling in Ottawa to be higher then \$45,000, write this constraint g) More then 35% of the bikes must be sent to calgary, write this constraint h) Their Current Manufacturing Plant has a capacity of 1000 units for this production period, write this constraint KMS has the option of renting out 2 more manufacturing plants in western Canada, but there are a few restrictions.

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