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yourfriendlyteacher The Omnichannel Company produces two products: I and II. The raw material requirements, space needed for storage, production rates, and selling prices for these
yourfriendlyteacher
The Omnichannel Company produces two products: I and II. The raw material requirements, space needed for storage, production rates, and selling prices for these products are given in Table 1. | |||
Table 1. Production Data | |||
Product | |||
I | II | ||
Storage Space (ft2/unit) | 4 | 5 | |
Raw Material (lb/unit) | 5 | 3 | |
Production Rate (unit/hr) | 60 | 30 | |
Selling Price ($/unit) | 13 | 11 | |
The total amount of raw material available per day for both products is 15751b. The total storage space for all products is 1500 ft 2, and a maximum of 7 hours per day can be used for production. | |||
PROBLEM | |||
All products manufactured are shipped out of the storage area at the end of the day. Therefore, the two products must share the total raw material, storage space, and production time. The company wants to determine how many units of each product to produce per day to maximize its total income. | |||
1) What is the optimum value for Product I? | |||
2) What is the optimum value for Product II? | |||
3) What is the maximized value ? | |||
4) Draw the Graph in a picture |
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