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Hart Manufacturing makes three products. Each product requires manufacturing operations in three departments: A, B, and C. The labor-hour requirements, by department, are as
Hart Manufacturing makes three products. Each product requires manufacturing operations in three departments: A, B, and C. The labor-hour requirements, by department, are as follows. Department Product 1 Product 2 Product 3 A 1.50 3.00 2.00 B 2.00 1.00 2.50 C 0.25 0.25 0.25 During the next production period, the labor-hours available are 450 in department A, 350 in department B, and 50 in department C. The profit contributions per unit are $26 for product 1, $27 for product 2, and $31 for product 3. (a) Formulate a linear programming model for maximizing total profit contribution. (Let P, = units of product i produced, for i = 1, 2, 3.) Max s.t. Department A Department B Department C (b) Solve the linear program formulated in part (a). How much of each product should be produced, and what is the projected total profit contribution (in dollars)? (P. P2, P3)= with profit $ (c) After evaluating the solution obtained in part (b), one of the production supervisors noted that production setup costs had not been taken into account. She noted that setup costs are $400 for product 1, $600 for product 2, and $570 for product 3. If the solution developed in part (b) is to be used, what is the total profit contribution (in dollars) after taking into account the setup costs? $
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