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A company produces three products, A, B, and C, each of which requires three resources, labor, material, and administration. The table below shows profits and
A company produces three products, A, B, and C, each of which requires three resources, labor, material, and administration. The table below shows profits and required resources for one unit of product. There are 100 hours of labor, 600 pounds of material, and 300 hours of administration available per day. The company needs to determine the optimal product mix, i.e. how many units of A, B, and C are produced per day, to maximize total profit. The company would also like to conduct sensitivity analysis to determine how the optimal solution and optimal value might change when parameters in the model change. Please answer the two questions below: (a) Among one hour of labor, one pound of material, and one hour of administration, which resource has the maximum impact on the maximum total profit? the current basis remains optimal when profit for one unit of B changes between $4 B? (b) Suppose and $10. How the maximum total profit changes as a function of the profit for one unit of One Unit of Product 10 Profit (S) Labor (hours) Material (pounds) Administration (hours) 104
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