Data Equipment Inc

question 7

Essay

Data Equipment Inc. produces two models of a retail price scanner, a sophisticated model that can be networked to a central processing unit and a stand-alone model for small retailers. The major limitations of the manufacturing of these two products are labor and material capacities. The following table summarizes the usages and capacities associated with each product. The typical LP formulation for this problem is:
Maximize P = $160 X₁ + $95 X₂
Subject to: 8 X₁ + 5 X₂ ≤ 800
20 X₁ + 7 X₂ ≤ 1500
X₁, X₂ ≥ 0
However, the management of DEI has prioritized several goals that are to be attained by manufacturing:
(1) Management had decided to severely limit overtime.
(2) Management has established a profit goal of $15,000 per day.
(3) Due to the difficulty of obtaining components from non-routine suppliers, management wants to end production with at least 50 units of each component remaining in stock.
(4) Management also believes that they should produce at least 30 units of the network model.
Given the above additional information, set this up as a goal programming problem.

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Definitions:

Competitive Advantage

The attributes or conditions that allow a company to produce goods or services better or more cheaply than its competitors, leading to a favorable position in the market.

Adaptive

Characterized by or denoting the capacity to adjust to new conditions or environments for better survival or functionality.

Flexible Organizations

Organizations that are able to adapt quickly to changes in the market or environment, often through the utilization of adaptable strategies, structures, and work processes.

Career Options

The range of occupations and roles available for an individual to pursue, based on their interests, skills, values, and the current job market.