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Merton Essay

670 words - 3 pages

OPERATIONS RESEARCH (TERM-2, PGP-1)PRE-MIDTERM ASSIGNMENTAnalyze the Merton trucks case given in Lecture-8 and respond to the questions listed below using excel solver.Ensure in the Excel solver formulation that relevant descriptions and units are given for decision variables, objective function and all the constraints. This is to ensure that appropriate description will be automatically generated in the answer report and sensitivity report.Apart from answering the questions below in the assignment, keep printout of your solver outputs (answer and sensitivity report) "as is" in the assignment hard-copy including the header information. Refer to sample answer report in the last page. Don't edit or make any changes to the report generated by excel-solver. The solver output must be an exact match of the excel file submitted with the assignment.The solver file should be named as RegistrationNumber_Section-ID_Merton.xls. (E.g. 2014103_Sec-D_Merton.xls). The solver file must include "formulation", "answer report" and "sensitivity report".A hard-copy assignment report containing response to the questions below in the same order must be submitted by 1-Nov-2014, 1229pm to Mrs. Poornima in the first floor of faculty block. The excel solver file must be submitted by email to with email subject as "RegistrationNumber Section-ID GIM" (e.g. 2014103 Section-D GIM) by 1-Nov-2014, 1229pm.This is an individual assignment. Any indulgence in academic malpractices, including copying in part or full will be punished severely.If you don't adhere to all the instructions, you can expect to be penalized with negative marks or zero.MERTON TRUCKS COMPANYKeeping 3000$ and 5000$ as unit contributions respectively for Model 101 and Model 102 trucks, formulate the Merton's product mix decision problem using LP. Present the LP problem in the standard form including all the details and units.Using solver, find the optimal product mix of these two trucks? What is the optimum total contribution that Merton can obtain?Tabulate, the optimality range for the decision variable coefficients and comment what will happen if the current unit contribution moves outside the range?Tabulate, the feasibility range for each constraint's capacity and comment what will happen if the current capacity moves outside the range?Due to increase in Engine component's material cost, the unit contribution for Model 101 came down to $2000. Do you recommend Merton to continue producing the optimal product mix as found...

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