The Kartick Company is trying to determine how much of each of two products to produce over the coming planning period. There are three departments, A, B, and C, with limited labor hours available in each department. Each product must be processed by each department and the per-unit requirements for each product, labor hours available, and per-unit profit are as shown below.   Labor required in each department   Product (hours/unit) Labor Hours Department Product 1 Product 2 Available A 1.00 0.30 100 B 0.30 0.12 36 C 0.15 0.56 50 Profit Contribution $33.00 $24.00     Let x1 = the amount of product 1 to produce   x2 = the amount of product 2 to produce                     Maximize  33 x1 + 24 x2                                                        s.t.                                 1.0 x1 + 0.30 x2 ≤  100          Department A                                 0.30 x1 + 0.12 x2 ≤ 36            Department B                                 0.15 x1 + 0.56 x2 ≤ 50            Department C                         x1, x2 ≥   0

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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The Kartick Company is trying to determine how much of each of two products to produce over the coming planning period. There are three departments, A, B, and C, with limited labor hours available in each department. Each product must be processed by each department and the per-unit requirements for each product, labor hours available, and per-unit profit are as shown below.

 

Labor required in each department

 

Product (hours/unit)

Labor Hours

Department

Product 1

Product 2

Available

A

1.00

0.30

100

B

0.30

0.12

36

C

0.15

0.56

50

Profit Contribution

$33.00

$24.00

 

 

Let

x1 = the amount of product 1 to produce

 

x2 = the amount of product 2 to produce

   


                Maximize  33 x1 + 24 x2                                       
                s.t.
                                1.0 x1 + 0.30 x2 ≤  100          Department A
                                0.30 x1 + 0.12 x2 ≤ 36            Department B
                                0.15 x1 + 0.56 x2 ≤ 50            Department C
                        x1, x2 ≥   0

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