Robin Tires, Inc. makes two types of tires, for SUV’s and Hatchbacks. The firm has 500 hours of production time, 250 hours of packaging, and 150 hours available for shipping. The production time required per tire type is given in the following table: Production Hours Type Production Packaging Shipping Profit/Tire
SUV tires 2 1.5 1 $22
Hatchbacks tires 1.5 1 0.5 $12
Assuming that the company is interested in maximizing the total profit contribution, find the optimal solution using Excel Solver and answer the following:
a. How many hours of production time will be scheduled in each department?
b. What is the slack time in each department?
c. If one more hour is available for packaging, what is the change in profit?
d. What is the change in profit if one more hour is available for shipping?
Implement a spreadsheet model and use Excel Solver to obtain a solution to the problem. Submit your Excel Solver file.