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OR Lecture 3

Par, Inc. is entering the medium- and high-priced golf bag market, with production constrained by limited hours in various departments and a profit contribution of $10 for standard bags and $9 for deluxe bags. The Weedwacker Company faces a similar situation, needing to fulfill a contract for electric and gas trimmers while managing production limitations and supplier relationships. Both companies require linear programming solutions to optimize their production and purchasing strategies.

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Riya Nagvanshi
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37 views14 pages

OR Lecture 3

Par, Inc. is entering the medium- and high-priced golf bag market, with production constrained by limited hours in various departments and a profit contribution of $10 for standard bags and $9 for deluxe bags. The Weedwacker Company faces a similar situation, needing to fulfill a contract for electric and gas trimmers while managing production limitations and supplier relationships. Both companies require linear programming solutions to optimize their production and purchasing strategies.

Uploaded by

Riya Nagvanshi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Operations Research

Lecture 3

Shivam Kushwaha
Assistant Professor (POM & QT)
Institute of Rural Management Anand
Product-Mix

Par, Inc., is a small manufacturer of golf equipment and supplies


whose management has decided to move into the market for
medium- and high-priced golf bags. Par, Inc.’s distributor has
agreed to buy all the golf bags Par, Inc., produces over the next
three months.

Each golf bag produced will require the following operations:


1. Cutting and dyeing the material
2. Sewing
3. Finishing (inserting umbrella holder, club separators, etc.)
4. Inspection and packaging

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Product-Mix

This production information is summarized in this table:

Facilities Production Time (hours)


Deluxe
Department Standard Bag Bag Capacity
Cutting and Dyeing 7/10 1 630
Sewing 1/2 5/6 600
Finishing 1 2/3 708
Inspection and Packaging 1/10 1/4 135

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Product-Mix

• Par, Inc.’s production is constrained by a limited number of hours


available in each department. The director of manufacturing
estimates that 630 hours for cutting and dyeing, 600 hours for
sewing, 708 hours for finishing, and 135 hours for inspection and
packaging will be available for the production of golf bags during
the next three months.

• The accounting department analyzed the production data and


arrived at prices for both bags that will result in a profit
contribution1 of $10 for every standard bag and $9 for every
deluxe bag produced.

• Formulate Formulate Linear Programming to solve the


problem of Par. Inc.

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LP Model

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Graphical Solution

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Graphical Solution

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Graphical Solution

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Graphical Solution

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Problem 8

The Weedwacker Company manufactures both gas and electric lawn trimmers.
The company has contracted to fulfill the demand of a national discount retail
chain with a total of 30,000 electric trimmers and 15,000 gas trimmers during
the next three months. However, Weedwacker’s production capability is limited
in three departments: production, assembly, and packaging. Table below
summarizes the hours of processing time available, and the processing time
required by each department, for both types of trimmers.

Table: Production Details


Hours/trimmer
Department Electric Gas Hours available
Production 0.4 0.6 10,000
Assembly 0.3 0.5 15,000
Packaging 0.1 0.1 5,000

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Problem 8

• The company makes its electric trimmer in-house for $55 per unit and its gas
trimmer for $85 per unit. Alternatively, Weedwacker can buy electric and gas
trimmers from one of its suppliers for $67 per unit and $95 per unit,
respectively. In order to maintain a good relationship with the supplier, the
company’s policy requires that at least 20% of trimmers be purchased from
the supplier.
• The objective of Weedwacker is to fulfill its contracted demand in the least
costly manner.

What is the optimal production and purchasing plans for Weedwacker?

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Thank you

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