Question
GFC produces cases (5,000 units per case) of two sizes of glow sticks, a 6-inch model and a 4-inch model. The requirements to produce each
GFC produces cases (5,000 units per case) of two sizes of glow sticks, a 6-inch model and a 4-inch model. The requirements to produce each case of glow stick are as follows:
Required Material |
4 Inch Model per Case |
6 Inch Model per Case |
Available Units (in tons) |
Soft Plastic | 300 | 400 | 36000 |
Color | 500 | 400 | 40000 |
Hard plastic | 500 | 200 | 30000 |
The revenue for each case of glowstick (no matter the model size) is $1000 per case. However, because of the size difference, the cost of a 6-inch case is $800.00 and the cost of a 4-inch case is 25% less than the 6-inch cost. In addition, the production budget is $1,034,423.
As the GFC Assistant Production Manager and must now formulate and solve this profit maximization production dilemma.
Step 1:
Step 2:
Step 3:
Step 4:
Step 5: "have to show a grid for the problem"
Step 6:
Are there any special cases in this problem? If so, what are they and briefly explain each special case.
Step by Step Solution
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