The WorldLight Company produces two light fixtures (products 1 and 2) that require both metal frame parts and electrical components. Management wants to determine how many units of each product to produce so as to maximize profit. For each unit of product 1, 1 unit of frame parts and 2 units of electrical components are required. For each unit of product 2, 3 units of frame parts and 2 units of electrical components are required. The company has 200 units of frame parts and 300 units of electrical components. Each unit of product 1 gives a profit of $1, and each unit of product 2, up to 60 units, gives a profit of $2. Any excess over 60 units of product 2 brings no profit, so such an excess has been ruled out. (a) Formulate a linear programming model for this problem. (b) Use the graphical method to solve this model. What is the resulting total profit?

The WorldLight Company produces two light fixtures (products 1 and 2) that require both metal frame parts and electrical components. Management wants to determine how many units of each product to produce so as to maximize profit. For each unit of product 1, 1 unit of frame parts and 2 units of electrical components are required. For each unit of product 2, 3 units of frame parts and 2 units of electrical components are required. The company has 200 units of frame parts and 300 units of electrical components. Each unit of product 1 gives a profit of $1, and each unit of product 2, up to 60 units, gives a profit of $2. Any excess over 60 units of product 2 brings no profit, so such an excess has been ruled out. (a) Formulate a linear programming model for this problem. (b) Use the graphical method to solve this model. What is the resulting total profit?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter13: best-practice Tactics: Game Theory

Section: Chapter Questions

Problem 14E

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