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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.

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