Question
OtterBox is producing three types of covers for Apple products: iPhone, iPad, and Macbook. The company's production facilities are such that if they devote the
OtterBox is producing three types of covers for Apple products: iPhone, iPad, and Macbook. The company's production facilities are such that if they devote the entire production to iPhone covers, they can produce 6,000 of them in one day. If they devote the entire production to iPad covers or Macbook covers, they can produce 5,000 or 3,000 of them in one day. The production schedule is one week (5 working days), and the week's production must be stored before distribution. Storing 1000 iPhone covers (packaging included) takes up 40 cubic feet of space. Storing 1000 iPad covers (packaging included) takes up 45 cubic feet of space, and storing 1000 Macbook covers (packaging included) takes up 210 cubic feet of space. The total storage space available is 6000 cubic feet. Due to commercial agreements with Apple, OtterBox has to deliver at least 5000 iPhone covers and 4000 Macbook covers per week in order to strengthen the product's diffusion. The marketing department estimates that the weekly demand for iPhone covers, iPad covers, and Macbook covers does not exceed 10000 and 15000, and 8000 units, therefore the company does not want to produce more than these amounts for iPhone, iPad, and Macbook covers. Finally, the net profit per iPhone cover, iPad cover, and Macbook cover is $4, $6, and $10, respectively
Question: Determine the number of iPhone, iPad, and Macbook covers produced over the week that maximizes the total net profit? Hint: Given the information above, use Solver to assist OtterBox in this optimization decision-making analysis. Create excel spread sheet to display this data.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started