MF5001: Two products are manufactured by a medical device producer using a 3D printing technique. Product 1 generates revenue of 5500 Euros: Mathematical Modelling in Supply Chains Assignment, UOL, Ireland

Two products are manufactured by a medical device producer using a 3D printing technique. Product 1 generates revenue of 5500 Euros of which 3600 Euros is profit. Product 2 generates revenue of 7600 Euros of which 5400 Euros is profit.

The line manager needs to find out how many of products 1 and 2 are to be scheduled for production for the coming production period. The production plant has 96000 production manhours of capacity for this production period. For manufacturing each unit of product 1, 12 hours of labor is required. This value for product 2 is 21 hours.

Due to a disruption in transportation operations, only 20000 grams of a special type of 3D printing filament are available for manufacturing these two products. Product 1 and Product 2 require 4 and 2 grams of these specific types of filament as part of their production plan, respectively. The marketing department estimates that product 2 demand for next month is no more than 3500 units.

• Develop and fully present an LP model that maximizes the profit for this company for the two products. Solve the developed LP model using the graphical solution procedure and present your calculations and results.
• An advertising campaign has the potential to increase product 2 demand by 20%. The campaign will cost 480000 Euros. Should the company undertake the campaign? Modify and present the LP model in (i) based on this new requirement. Solve the modified LP model using the graphical solution approach and present your calculations and results.
• The line manager wants to increase the production man-hour capacity by 25%. Modify and present the LP model in (i) based on this new requirement. Solve the modified LP model using the graphical solution approach and present your calculations and results.