Data Equipment Inc

Essay

Data Equipment Inc.produces two models of a retail price scanner, a sophisticated model that can be networked to a central processing unit and a stand-alone model for small retailers.The major limitations of the manufacturing of these two products are labor and material capacities.The following table summarizes the usages and capacities associated with each product.

Capacity 800 hr/day 1,500 comp/day
The typical LP formulation for this problem is:
Maximize P = $160 X1 + $95 X2
Subject to: 8 X1 + 5 X2 ≤ 800
20 X1 + 7 X2 ≤ 1500
X1, X2 ≥ 0
However, the management of DEI has prioritized several goals that are to be attained by manufacturing:
Management had decided to severely limit overtime.
Management has established a profit goal of $15,000 per day.
Due to the difficulty of obtaining components from non-routine suppliers, management wants to end production with at least 50 units of each component remaining in stock.
Management also believes that they should produce at least 30 units of the network model.
Given the above additional information, set this up as a goal programming problem.