Question
A firm offers three different prices on its products, depending upon the quantity purchased. Since available resources are limited, the firm would like to prepare
A firm offers three different prices on its products, depending upon the quantity purchased. Since available resources are limited, the firm would like to prepare an optimal production plan to maximize profits. Product 1 has the following profitability: $10 each for the first 50 units, $9 each for units 51100, and $8 for each unit over 100. Product 2s profitability is $20 each for the first 25 units, $19 each for units 2650, and $18 each for each unit over 50. The products each require 3 raw materials to produce (see table below for usages and available quantities).
NO POUNDS WERE GIVEN FOR THIS PROBLEM. THERE WAS NO INFORMATION LEFT OUT OF THE PROBLEM. IT IS FOR A RISK & ANALYSIS CLASS.
Raw Material | Product 1 usage (pounds per unit) | Product 2 usage (pounds per unit) | Available Quantity (pounds) |
A | 5 | 4 | 800 |
B | 12 | 10 | 2,000 |
C | 1,000 | 2,000 | 190,000 |
Use separable programming to find the optimal production plan. (Round all quantities to the nearest whole number and round profits to 2 decimal places.)
1) Units of Product 1?
2) Units of Product 2?
3) The total profit for this plan will be?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started