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Nucor a manufacturing company has received orders for 80 metal lockers, 75 desks, 200 Shelves and 25 TV stands for the month of August. Nucor sells metal lockers for $90 each, shelves for $150 each, TV stands for $65 each and desks for $95 each.

Nucor has the option of manufacturing these products in house or purchasing them from an outside supplier. The associated costs are given below

**Product** **Cost if Manufactured** **Cost if purchased ** **Locker** 75 80 **Shelf** 125 140 **TV stand** 30 45 **Desk** 48 62

The company has three types of welding machines: 10 type P, 6 type Q and 5 type R.

Type P machines can complete 5 jobs/month, Q machines can complete 10 jobs/month and R machines can complete 11 jobs/month. Machine type Q and R can be used to weld lockers and desks. Machine type P and Q can be used to weld shelves and TV stands.

The number of lockers purchased cannot exceed the number of lockers manufactures

The number of desks manufactured must be no more than twice the number of shelves manufactured

At least 30% of the TV stands must be manufactured.

The total number of goods purchased must be within 25% of the total number of goods manufactured.

Formulate a Linear Programming model that will maximize profit for Nucor.

(2) Cress Electronic Products manufactures components used in the automotive industry. Cress purchases parts for use in its manufacturing operation from a variety of different suppliers. One particular supplier provides a part where the assumptions of the EOQ model are realistic. The annual demand is 1200 units, the ordering cost is $50 per order, and the annual holding cost rate is 25%.

a. If the cost of the part is $30 per unit, what is the economic order quantity?

b. Assume 300 days of operation per year. Cress Electronics wants a 99% service level. If the lead time for an order is 10 days and the standard deviation of daily demand is 2, what is the reorder point with safety stock?

c. What is the total annual cost

d. The supplier has informed Cress that it can offer the following quantity discounts

Quantity Price 1-499 $30 500-1499 $28 1500 and above $27

Based on this information in what quantity should Crest choose when making orders?

3) Doug Casey is in charge of planning and coordinating next spring’s sales management training program for his company. Doug listed the following activity information for this Project:

a. Draw the network

b. Estimate earliest start and earliest finish times along with latest start and latest finish times.

c. What is the critical path?

d. What are the slack times for activities B and F?

e. What is the probability that the project will be completed in 18 days or less?

Attachments:

Assignment-3…..docx