excel LP

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Suppose that a custom molder has one injection-molding machine and two different dies to

fit the machine. Due to differences in number of cavities and cycle times, with the first die he can produce 100 cases of six-ounce juice glasses in six hours, while with the second die he can produce 100 cases of ten-ounce fancy cocktail glasses in five hours. The molder also makes champagne glass. However, it requires complex process and hence the production time for the champagne glass is 8 hours per hundred cases.

He prefers to operate only on a schedule of 60 hours of production per week. He stores the week’s production in his own stockroom where he has an effective capacity of 15,000 cubic feet. A case of six-ounce juice glasses requires 10 cubic feet of storage space, while a case of ten-ounce cocktail glasses requires 20 cubic feet due to special packaging. The storage space required for the champagne glasses is 1000 cubic feet per hundred cases. The contribution of the six-ounce juice glasses is $5.00 per case; however, the only customer available will not accept more than 800 cases per week. The contribution of the ten-ounce cocktail glasses is $4.50 per case and there is no limit on the amount that can be sold. The contribution of the champagne glasses is $6.00 per case and there is no limit on the demand for champagne. How many cases of each type of glass should be produced each week in order to maximize the total contribution?

Also, get the sensitivity analysis report and interpret it. Provide your answer here. 20 Points

Glass Type

Optimal Quantity

Reduced Cost

Explanation/ Interpretation of the Reduced Cost

Six-ounce

Ten-ounce

Champagne

Glass Type

Shadow Price

Explanation/ Interpretation of Shadow Price

Hours

Space

Demand for 6-ounce glasses