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GIANT MOTOR COMPANY - I Plant Characteristics Lyra Libra Hydra 1000 800 900 2000 2000 2600 Profit

Margin 0 3 0

Capacity Fixed Cost

New Lyra New Libra 1600 1800 3400 3700

Lyra Libra Hydra Demand Lyra Libra Hydra Decision factors Lyra Libra Hydra

2 0 0

0 0 5

2.5 3 0 11140 7100 4040

2.3 3.5 4.8

1400 1100 800

Revenue FixedCost Profit

0 0 0 0

0 0 0 0

0 0 0 0

1 1400 100 0

1 0 1000 800

1 1

Restrictions <= 1 <= 1

Production Capacity 0 <= 0 0 <= 0 0 <= 0 1500 <= 1600 1800 <= 1800 Demand Constraints Production 1400 <= 1100 <= 800 <=

Solution: The company should expand the capacity of the Lyra and Libra plants New Lyra Plant Produce 1400,000 Lyra and 100,000 Libra New Libra Plant Produce 1000,000 Libra and 800,000 Hydra

Lyra Libra Hydra

1400 1100 800

Solution: The company should expand the capacity of the Lyra and Libra plants New Lyra Plant Produce 1.4 million Lyra and 0.1 million Libra New Libra Plant Produce 1 million Libra and 0.8 million Hydra

Shortage Lyra 0 Libra 0 Hydra 7.74E-11

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