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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
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
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