Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Absolute Corp. manufactures five products: A, B, C, D, & E. Each product requires manufacturing time (labor hours) in three departments (Dept. 1, 2,

image text in transcribed

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:

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Project management the managerial process

Authors: Eric W Larson, Clifford F. Gray

5th edition

73403342, 978-0073403342

More Books

Students also viewed these General Management questions