Question
A manufacturing firm produces two products, A and B, using two limited resources. The maximum amounts of resources 1 and 2 available per day are
A manufacturing firm produces two products, A and B, using two limited resources. The maximum amounts of resources 1 and 2 available per day are 1000 and 250 units, respectively. The production of 1 unit of product A requires 1 unit of resource 1 and 0.2 unit of resource 2, and the production of 1 unit of product B requires 0.5 unit of resource 1 and 0.5 unit of resource 2. The unit costs of resources 1 and 2 are given by the relations(0.375 0.000051 ) and (0.75 0.00012 ) respectively, where denotes the number of units of resource used( = 1,2). The selling prices per unit of products A and B, and are given by = 2.00 0.0005 0.0015 = 3.50 0.0002 0.0015 Where and indicate, respectively, the number of units of products A and B sold. Formulate the problem of maximizing the profit assuming that the firm can sell all the units it manufactures
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