Question
Using the Solver function in excel: The Orange Inc. is an American technology company that sells two products: laptops and printers. In this quarter, they
Using the Solver function in excel: The Orange Inc. is an American technology company that sells two products: laptops and printers. In this quarter, they have one million dollars available to order products and then sell them to the consumers. They have two manufacturers: one located in USA and the other in China. Orange Inc. can order both products from these two manufacturers. Production costs at these two locations are different, and given in the table below. The US government requires that at least 40% of each product that Orange orders should come from the USA manufacturer. That is, if Orange company orders 40 laptops and 100 printers as whole, then at least 16 laptops and at least 40 printers should be ordered from the USA manufacturer. The combined total of the number of laptops ordered from USA and China together should be equal to or greater than 1000. Similarly, the combined total of the number of printers ordered from USA and China together should be equal to or greater than 1000. How should the company place its orders, if it wants to maximize total profit? Partial production, orders, and sales, of laptops and printers are not allowed.
Per Printer | ||
USA | China | |
Labor Costs | $20.00 | $10.00 |
Material Costs | $50.00 | $48.00 |
Shipping Costs | $4.00 | $14.00 |
Selling Price | $100.00 |
Per Laptop | ||
USA | China | |
Labor Costs | $75.00 | $35.00 |
Material Costs | $350.00 | $350.00 |
Shipping Costs | $9.00 | $40.00 |
Selling Price | $750.00 |
Refer to The Orange Inc. problem. At the optimal solution, the total profit is:
a. | $ 657,500 | |
b. | $ 722,282 | |
c. | $ 964,500 | |
d. | $ 789,800 |
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