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Risk analysis/decision problem. A firm offers three different prices on its products, depending upon the quantity purchased. Since available resources are limited, the firm would
Risk analysis/decision problem.
A firm offers three different prices on its products, depending upon the quantity purchased. Since available resources are limited, the firm would like to prepare an optimal production plan to maximize profits. Product 1 has the following profitability: $10 each for the first 50 units, $9 each for units 51-100, and $8 for each unit over 100. Product 2's profitability is $20 each for the first 25 units, $19 each for units 26-50, and $18 each for each unit over 50. The products each require 3 raw materials to produce (see table below for usages and available quantities). Product 1 usage (pounds Product 2 usage (pounds Available Quantity Raw Material per unit) per unit) (pounds) A 5 4 800 B 12 10 2,900 C 1, 900 2,900 190, 900 Use separable programming to find the optimal production plan. (Round all quantities to the nearest whole number and round profits to 2 decimal places.) units of Product 1 and units of Product 2. The total profit from this plan will beStep by Step Solution
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