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Absolute Corp. manufactures five products: A, B, C, D, & E. Each product requires manufacturing time (labor hours) in three departments (Dept. 1, 2,
Absolute Corp. manufactures five products: A, B, C, D, & E. Each product requires manufacturing time (labor hours) in three departments (Dept. 1, 2, & 3) as shown below. The maximum labor hours available next week in each department are 1000 labor hours in Dept. 1, 620 labor hours in Dept. 2, & 540 labor hours in Department 3. If Product A is run, $500 in setup cost is incurred. If Product B is run, $625 in setup cost is incurred. If Product C is run, $510 in setup cost is incurred. If Product D is run, $450 in setup cost is incurred. If Product E is run, $325 in setup cost is incurred. The gross profit per unit for each product is $85 for Product A, $100 for Product B, $72 for Product C, $75 for Product D, and $25 for Product E. The marketing manager has specified that maximum demand is 92 units of Product A, 125 units of Product B, 80 units of Product C, 115 units of Product D, and 79 units of Product E next week based on their forecasts. The CEO wants to maximize net profit next week. Labor Hours per Unit Department Product A Product B Product C Product D Product E 1 1.2 3.2 2.7 4.2 3.5 2 1.4 2.5 2.9 4.1 3.3 3 4.2 2.6 3.2 3.8 3.0 Formulate the model in your document using the headings listed below: Decision Variables: Objective Function: Constraints: Additional Work for Constraints:
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