Question

You must purchase new machines for cutting fabric used in manufacturing chairs. The efficiencies varies from 70, 80, 90 percent. Costs of machines which depends on assumed efficiencies are about $4000, $6000 and $10,000, respectively. What would be your optimum decision if maximum budget available for purchasing these machines is about $30,000.00? Test your options if you must have at least 2 cheap machines in the mix, or at least one high performance machine.

• Step 1. Construct the problem in excel;
• Step 2. Use excel solver.
  • You can find solver from Data -> Solver in excel.

Answer 1

1.

What would be your optimum decision if maximum budget available for purchasing these machines is about $30,000.00?

2.

Test your options if you must have at least 2 cheap machines in the mix

3.

Test your options if at least one high performance machine.

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