Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

LP Large Problem (4 marks for question, 6 marks for worksheet) A company sells three products: A, B, and C. The company has customer orders

image text in transcribed

LP Large Problem (4 marks for question, 6 marks for worksheet) A company sells three products: A, B, and C. The company has customer orders for 2,000 units of A, 3.750 B's, and 1,700 C's. The company makes the products in-house, which requires production and shipping resources (constraints 1, 2) as shown in the table below. The company can outsource some demand for A and B, but cannot outsource C. Outsourcing requires no production or shipping resources. The company wants to make at least 3,000 units in-house (constraint 3), satisfy as many orders as possible (constraints 4, 5, 6), and maximize total profit (objective function (). Product Selling price $20 $25 $30 A Decision variables Make (M) Outsource (S) AM AS BM BS CM Cost per product Make Outsource $13 $16 $16 $20 $18 Available hours Resources to make (M) product Production Shipping 4 hours 1 hour 5 B 16,500 hours 6,500 hours

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

Step: 3

blur-text-image

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

Video Basics

Authors: Herbert Zettl

6th Edition

0495569437, 9780495569435

More Books

Students also viewed these Accounting questions

Question

Explain all drawbacks of application procedure.

Answered: 1 week ago