Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Anderson and Co. produces white wine and red wine. Every month they establish the optimal amount of bottles of each of the kinds

image text in transcribedimage text in transcribed

1. Anderson and Co. produces white wine and red wine. Every month they establish the optimal amount of bottles of each of the kinds of wine they should produce. Let W = number of bottles of white wine produced Rnumber of bottles of red wine produced Given that the profit per unit of each bottle of white wine is $3.2 and the profit of the bottles of red wine is $4.6, write mathematical expressions to represent the following: a. The total amount of bottles produced should not exceed 2000. b. There should be at least 500 bottles of white wine. c. The total profit obtained. d. The number of bottles of red wine should be at least twice as large as the number of bottles of white wine. e. The profit obtained with the red wine should be at least as large as the profit obtained with the white wine. f. At most three quarters of the total production should be red wine. 2. Sil Computers makes quarterly decisions about their product mix. While their full product line includes hundreds of products, we will consider a simpler problem with just two products: notebook computers and desktop computers. Sil Computers would like to know how many of each product to produce in order to maximize profit for the quarter. There are a number of limits on what Sil Computers can produce. The major constraints are as follows: Each computer (either notebook or desktop) requires a Processing Chip. Due to tightness in the market, our supplier has allocated 10,000 such chips to us. Each computer requires memory. Memory comes in 16MB chip sets. A notebook computer has 16MB memory installed (so needs 1 chip set) while a desktop computer has 32MB (so requires 2 chip sets). We received a great deal on chip sets, so have a stock of 15,000 chip sets to use over the next quarter. Each computer requires assembly time. Due to tight tolerances, a notebook computer. takes more time to assemble: 4 minutes versus 3 minutes for a desktop. There are 25,000 minutes of assembly time available in the next quarter. Given current market conditions, material cost, and our production system, each notebook computer produced generates $750 profit, and each desktop produces $1000 profit. Develop a linear model to find out how many of each type of computer Sil Computers should produce in the next quarter if their objective is to maximize profit.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Financial Management

Authors: Eugene F. Brigham, Phillip R. Daves

13th Edition

1337395080, 9781337395083

Students also viewed these General Management questions

Question

8. : (3 Points) 8. : (3 Points)

Answered: 1 week ago

Question

If alpha were changed to .01, would your decision remain the same?

Answered: 1 week ago