Question
Toyota faces the following demand curves for its Camry (C) and Avalon (A) lines QC = 1500000 - 5PC^3+ .0002log(PA+1) (where QC is quantity of
Toyota faces the following demand curves for its Camry (C) and Avalon (A) lines
QC = 1500000 - 5PC^3+ .0002log(PA+1)
(where QC is quantity of C and PC is price of C and PA is price of A)
QA = 10000 - 7PA + .00015PC^4
Avalons are produced in two plants: X and Y. The amount of labor to produce an Avalon in plant X is 70 labor hours and in plant Y is 72 labor hours.
Camry’s are also produced in plants X and Y. The amount of labor to produce a Camry in plant X is 69 labor hours and in plant Y is 70 labor hours.
Labor is paid $25 an hour.
There are a total of 120,000 labor hours available for plant X,
There are a total of 90,000 labor hours available for plant Y.
Material costs per Camry are $200 while material costs per Avalon are $270.
WRITE TOYOTA’S OBJECTIVE AND CONSTRAINTS OUT AS A LINGO PROGRAM. BE CAREFUL. Make sure you get all the details.
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