For Christmas, a small business owner must decide how much to make of its two main products:
Question:
For Christmas, a small business owner must decide how much to make of its two main products: Alcapurrias and pasteles. Individual alcapurrias can be sold for $2.00 and each individual pastel for $3.50. There are only two components to make either alcapurrias or pasteles: component A and component B. Each unit of component A has a cost of $0.30 anc each unit of component B has a cost of $0.75. Alcapurrias consumes two units of component A and 1 unit of component B. Pasteles consumes one unit of component A and three units of component B. The small business owner has 1000 units of component A and 600 units of component B available per week. It is estimated that the demand for pasteles and alcapurrias will be at least 150 and 100, respectively. If the small business owner wants to optimize its profits,
a) Explain what the 'decision variables' are.
b) Formulate and show the algebraic equations (standard form) model of this LP problem.