3. A manager wants to know how many units of each product to produce on a daily basis in order to achieve the highest contribution to profit. Production requirements for the products are shown in the following table: Material 1 Material 2 (pounds) 3 Labor Product (pounds) (hours) 3.2 1.5 A B 1 5 C 6. Product A sells for $80 a unit, product B sells for $90 a unit, and product C sells for $70 a unit. Available resources each day are 200 pounds of material 1; 300 pounds of material 2; and 150 hours of labor. The manager must satisfy certain output requirement: The output of product A should not be more than one-third of the total number of unit produced; the ratio of units of product A to units of product B should be 3 to 2; and there is a standing order for 5 units of product A each day. (Hind: six constrains: material 1, material 2, labor, A output 1/3, ratio of product A and product B, product A order) Please define the decision variables, the objective function, and formulate the constraints. Next, please formulate the LP model and solve for the optimal values of the decision variables and the maximum profit on Excel Solver.

3. A manager wants to know how many units of each product to produce on a daily basis in order to achieve the highest contribution to profit. Production requirements for the products are shown in the following table: Material 1 Material 2 (pounds) 3 Labor Product (pounds) (hours) 3.2 1.5 A B 1 5 C 6. Product A sells for $80 a unit, product B sells for $90 a unit, and product C sells for $70 a unit. Available resources each day are 200 pounds of material 1; 300 pounds of material 2; and 150 hours of labor. The manager must satisfy certain output requirement: The output of product A should not be more than one-third of the total number of unit produced; the ratio of units of product A to units of product B should be 3 to 2; and there is a standing order for 5 units of product A each day. (Hind: six constrains: material 1, material 2, labor, A output 1/3, ratio of product A and product B, product A order) Please define the decision variables, the objective function, and formulate the constraints. Next, please formulate the LP model and solve for the optimal values of the decision variables and the maximum profit on Excel Solver.

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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