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MOSIS - 1 0 points Correct legend ( variable , units, of what ) ( 1 pt ) ; Correct profit calculation ( 2 pts

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MOSIS -10 points
Correct legend (variable, units, of what)(1 pt); Correct profit calculation (2 pts); Correct objective function (1
pt); Production constraints (3 points); Non-negative constraint (1 pt); Excel solution (2 pts)MEMO
To: Management Science Analysist
From: J. Kilby, design chief
Re: Production schedule
MOSIS can produce three types of CPU chips. The company is planning a monthly production schedule. The
following departments have provided helpful information.
Accounting:
The accounting department has identified the productions costs and the sales price and included them in the
following table:
Production:
The production department cannot produce more than 4000 units of all chips. Products are made on the
"chipping" machine, which can produce 20,30, or 40 units of chips A, B, or C, respectively, per hour. The
machine is available for up to 120 hours each month.
Marketing:
The marketing department requires the production of at least 1000 chips of type B and no more than 500
units of chip A. The marketing department also requires that there be at least twice as many units of B as of
C in the monthly schedule.
Finance:
The finance department has set an upper budget limit of $20,000 for the schedule.
Management: The Company's declared objective is profit maximization. How many units of A, B, and C
should the company produce?
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