Question
Martha 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:
Martha 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 | 3.00 | 2.5 | 3.20 |
B | 2.75 | 2.20 | 1.10 |
C | 0.45 | 0.75 | 0.50 |
Max production | 70 | 100 | 80 |
During the next production period, the labor-hours available are 550 in department A, 450 in department B, and 110 in department C. The profit contributions per unit are $25 for product1, $28 for product 2, and $30 for product 3. Setup costs are $400 for product 1, $550 for product 2, and $600 for product 3.
a) Formulate a linear programming model for maximizing total profit contribution. (4 marks)
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? (6 marks)
Note that you need to submit your excel document to get credit for this part.
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