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11. Vape Atmosphere (VA) manufactures the vaponizer machine. Vaponizer is for smoking therapy for those who want to quit smoking and this company is
11. Vape Atmosphere (VA) manufactures the vaponizer machine. Vaponizer is for smoking therapy for those who want to quit smoking and this company is located at Sri Gombak, Selangor. It recently designed two machines for vaponizer. IPV1 consists of a cartridge, atomizer and switcher. To combine these 3 parts to become one vaponizer, 3 hours are needed for machining and 2 hours for painting. To complete one unit of vaponizer, the company incurred raw material costs of $150. IPV2 consists of a cartridge, atomizer and switcher. To combine these 3 parts to become one vaponizer, 4 hours are needed for machining and 3 hours for painting. The raw material costs incurred for this type of product is RM 200. For the next production, the management estimates that 600 hours of machining, and 500 hours of painting will be available. The total amount of budget allocated for direct material in a month is RM 5000. The profit contribution for IPV1 is $150 and for IPV2 is $200. The minimum production for IPV1 is $250 and for IPV2 is $350. The market in which the two vaponizers must compete suggests a retail price of $300 for IPV1 and $400 for IPV2. Formulate a linear programming model that can be used to determine the amount of company that should be allocated to each type of product in order to maximize the total profit. How many units of each product should be produced to maximize the total profit contribution? What is the projection profit associated with the solution?
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