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Heart Valves Suppliers

Heart Valves Suppliers. Raymond Valencia Kevin Meono Brandon Blaydes. Problem Statement Summarization Formulation Input Values Optimal Solution Sensitivity Analysis Unit Cost of Supplier 1 Demand for large valves Report to Manager. Outline.

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Heart Valves Suppliers

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  1. Heart Valves Suppliers Raymond Valencia Kevin Meono Brandon Blaydes

  2. Problem Statement • Summarization • Formulation • Input Values • Optimal Solution • Sensitivity Analysis • Unit Cost of Supplier 1 • Demand for large valves • Report to Manager Outline

  3. U.S. labs manufactures mechanical heart valves from the heart valves of pigs. Different heart operations require valves of different sizes. U.S. Labs purchase pig valves from three different suppliers. The cost and size mix of the valves purchased from each supplier are given in the Table [below]. Each month, U.S. Labs places one order with each supplier. At least 500 large, 300 medium, and 300 small valves must be purchased each month. Because if limited availability of pig valves, at most 700 valves per month can be purchased from each supplier. Formulate an LP that can be used to minimize the cost of acquiring the needed valves. Problem Statement

  4. Summarization Sign Restriction

  5. X1 = number of valves purchased from Supplier 1 X2 = number of valves purchased from Supplier 2 X3 = number of valves purchased from Supplier 3 MINIMIZE COST .2 O.F. S.T. Large Medium Small Formulation

  6. Input Values

  7. Solution

  8. Minimal Cost Optimal Solution

  9. Unit Cost for Supplier 1 • Demand for large valves Sensitivity Analysis

  10. Unit Cost for Supplier 1

  11. New Solution

  12. Table Representation

  13. Graphical Representation

  14. Demand for large valves

  15. New Solution

  16. Table Representation

  17. Graphical Representation

  18. Purchasing Order: Minimum cost: $6450 • order 700 heart valves from supplier 1 • order 700 heart valves from supplier 2, • order 50 heart valves from supplier 3 in order to obtain the minimum cost of $6450. Even though Supplier 1 cost the most, it has the highest percentage of the large valves which constitutes 45% of the orders. Report to Manager

  19. fulfilled the required amount of valves of each size that has to be purchased every month. • U.S. labs have not exceeded the supply that each supplier can provide. • Purchase order satisfies all the criteria • Provides the lowest possible cost under the limitations and current conditions. Requirements met

  20. Original, Supplier 1 Unit Cost $5 Output if Supplier 1 Unit Cost $4 Sensitivity Analysis

  21. Original, Supplier 1 Unit Cost $5 Supplier 1 Unit Cost $3 Unit Cost = $3

  22. Availability of pig valves is 700 per supplier Increase availability of pig valves to 800 per supplier Availability=800 valves

  23. Questions?

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