Exercise Ch9-2: Level 1 – Creating a Production Plan for ATC Inc.
ATC Inc. is a manufacturing company that produces industrial valves. As the operations manager, you need to determine the production schedule for manufacturing three valves in the new 102 Series, which is used in oil refineries. Producing the 102 Series valves is a three-part process. During the casting phase, the body of the valve and some of the attaching pieces are created. During the machining phase, the casting surfaces are finished, and the inner valve flange is created. Finally, during the last phase, the valves are assembled and inspected.
The plant manager provided you with a workbook that contains the production times for each production phase, and the unit cost and list price for each 102 Series valve.
The plant manager also told you that your time is limited to 500 hours in the Casting Department, 500 hours in the Machining Department, and 100 hours in the Final Assembly Department. No more time is available in these departments. The workbook also includes the setup costs associated with a production run for each valve. You must account for these costs in the profit amounts for each valve.
Based on historical demand for these valves, the company has a policy that any single valve in the 102 Series should constitute at least 10% of the production run and that no single valve should constitute more than 50% of the total production time. Your goal is to maximize the total profit of producing these valves while not exceeding the time available in each department.
Complete the following:
1. Open the ATCValve.xlsx workbook from the Chapter 9 folder, and then save the file as
2. Write the formulas that calculate the total production time used for casting, machining, and final assembly. Enter a mathematical formula in the objective cell, and then enter formulas to link the objective cell with the variable cells. Add sample values to the variable cells to ensure that your worksheet is set up correctly and produces the expected results.
3. Create a constraints table in the worksheet that identifies the constraints in this problem.
4. Use Solver to determine the optimal combination of valves to build to maximize profit.
5. Produce an answer report of your solution. Which constraints could you modify to maximize the total profit? Place your recommendations in a text box on the answer report worksheet.
6. Save your solution as Scenario 1.
7. Modify the constraints in your constraints table and in Solver that you determined would further improve the solution, and then run Solver again. Save this scenario as Scenario 2. Add a comment to the scenario describing the constraints you modified and why you chose to do so.
8. Produce an answer report of your revised solution. Did your solution accomplish the goals you identified in Step 5? What other changes can you recommend to maximize the total profit? Place your recommendations in a text box on the answer report worksheet.
9. Save and close the 9-2-ATCValve-Production-YourName.xlsx workbook.
We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.Read more
The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.Read more
The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.Read more
By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.Read more