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(c) A company manufactures two products: X and Y. Product X costs $8 per unit and contains 2 units of raw material 1, 6 units of raw material 2 and 4 units of raw material 3. Product Y costs $10 per unit and contains 2 units of raw material 1, 2 units of raw material 2 and 12 units of raw material 3. The company has 80 units of raw material 1, 120 units of raw material 2 and 240 units of raw material 3 available. In addition, the product Y should be at least 15 units less than product X. How many units of each product should the company produce to minimize the cost of production? (i) Derive the system of equations. (ii) Use the extreme point method to solve the system. Ensure that you explain each step in the computation.

(c) A company manufactures two products: X and Y. Product X costs $8 per unit and contains 2 units of raw material 1, 6 units of raw material 2 and 4 units of raw material 3. Product Y costs $10 per unit and contains 2 units of raw material 1, 2 units of raw material 2 and 12 units of raw material 3. The company has 80 units of raw material 1, 120 units of raw material 2 and 240 units of raw material 3 available. In addition, the product Y should be at least 15 units less than product X. How many units of each product should the company produce to minimize the cost of production? (i) Derive the system of equations. (ii) Use the extreme point method to solve the system. Ensure that you explain each step in the computation.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 33P: Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand...
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(c) A company manufactures two products: X and Y. Product X costs $8 per unit and contains 2 units of raw material 1, 6 units of raw material 2 and 4 units of raw material 3. Product Y costs $10 per unit and contains 2 units of raw material 1, 2 units of raw material 2 and 12 units of raw material 3. The company has 80 units of raw material 1, 120 units of raw material 2 and 240 units of raw material 3 available. In addition, the product Y should be at least 15 units less than product X. How many units of each product should the company produce to minimize the cost of production? (i) (ii) Derive the system of equations. Use the extreme point method to solve the system. Ensure that you explain each step in the computation.
Transcribed Image Text:(c) A company manufactures two products: X and Y. Product X costs $8 per unit and contains 2 units of raw material 1, 6 units of raw material 2 and 4 units of raw material 3. Product Y costs $10 per unit and contains 2 units of raw material 1, 2 units of raw material 2 and 12 units of raw material 3. The company has 80 units of raw material 1, 120 units of raw material 2 and 240 units of raw material 3 available. In addition, the product Y should be at least 15 units less than product X. How many units of each product should the company produce to minimize the cost of production? (i) (ii) Derive the system of equations. Use the extreme point method to solve the system. Ensure that you explain each step in the computation.
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ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
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