A luggage manufacturer has to decide how many suitcases and duffel bags have to be produced to maximize profit. Demand for chairs is x1 = 3,000 - 18.7p1 where p1 is the price for x1. Demand for stools is x2 = 3,100 - 39.8p2 where p2 is the price for boots. The constraints for the model are as follows:

c1 = 1.2x1 + 0.5x2 … 3,000 (metal)

c2 = 0.3x1 + 5.7x2 … 2,000 (cloth)

c3 = 3.5x1 + 1.2x2 … 12,000 (plastic)

Use Exhibit 10.9 and Excel Solver to solve this model to maximize the company’s total profit.

 LO.1