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A manufacturer produces both widgets and gadgets. Widgets generate a profit of $40 each and gadgets have a profit margin of $65 each. To produce
A manufacturer produces both widgets and gadgets. Widgets generate a profit of $40 each and gadgets have a profit margin of $65 each. To produce each item, a setup cost is incurred. This setup cost is $500 for widgets and $500 for gadgets. Widgets consume 5 units of raw material A and 3 units of raw material B. Gadgets consume 6 units of raw material A and 2 units of raw material B. Each day, the manufacturer has 400 units of each raw material available. Assume that it is possible to produce fractional quantities of widgets and gadgets. Max P=40 x1 + 65 x2 - 500 y1 - 500 Y2 s.t. 5x + 6x2 s 400 {Raw material A} 3x1 + 2x2 5 400 {Raw material B} 9999712 x1 {Widget Setup Cost} 9999y22 x2 {Gadget Setup Cost} X1, X220 and y1, y2 = 0,1(Binary) 2 JUU Y2 JUU Y s.t. 5x + 6x2 s 400 {Raw material A} 3x1 + 2x2
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