A manufacturer can sell product 1 at a profit of $2/unitand product 2 at a profit of $5/unit. Three units of rawmaterial are needed to manufacture 1 unit of product 1, and6 units of raw material are needed to manufacture 1 unit ofproduct 2. A total of 120 units of raw material are available.If any of product 1 is produced, a setup cost of $10 isincurred, and if any of product 2 is produced, a setup costof $20 is incurred. Formulate an IP to maximize profits.
A manufacturer can sell product 1 at a profit of $2/unitand product 2 at a profit of $5/unit. Three units of rawmaterial are needed to manufacture 1 unit of product 1, and6 units of raw material are needed to manufacture 1 unit ofproduct 2. A total of 120 units of raw material are available.If any of product 1 is produced, a setup cost of $10 isincurred, and if any of product 2 is produced, a setup costof $20 is incurred. Formulate an IP to maximize profits.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A manufacturer can sell product 1 at a profit of $2/unit
and product 2 at a profit of $5/unit. Three units of raw
material are needed to manufacture 1 unit of product 1, and6 units of raw material are needed to manufacture 1 unit of
product 2. A total of 120 units of raw material are available.
If any of product 1 is produced, a setup cost of $10 is
incurred, and if any of product 2 is produced, a setup cost
of $20 is incurred. Formulate an IP to maximize profits.
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