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Formulate the problem as a linear program, and determine the optimum production schedule for each tool using Solver.

Words: 98
Pages: 1
Subject: Finance

Tool Co. has contracted with AutoMative to supply their automotive discount stores with wrenches and chisels. AutoMative’s weekly demand consists of at least 1500 wrenches and 1200 chisels. Tool Co. cannot produce all the requested units with its present one-shift capacity and must use overtime and possibly subcontract with other tool shops. The result is an increase in the production cost per unit, as shown in the following table. Market demand restricts the ratio of chisels to wrenches to at least 2:1.

Formulate the problem as a linear program, and determine the optimum production schedule for each tool using Solver.