A company manufactures two types of products: A and B. Product A sells for $27 and uses $10 worth of raw materials. Each Product A that is manufactured increases the company's variable labor and overhead costs by $14. Product B sells for $21 and uses $9 worth of raw materials. Each Product B built increases the company's variable labor and overhead costs by $10. The manufacture of Products A and B requires two types of skilled labor: carpentry and finishing. Each Product A requires 2 hours of finishing labor and 1 hour of carpentry labor. Each Product B requires 1 hour of finishing and 1 hour of carpentry labor. Each week, the company can obtain all the needed raw material but only 100 finishing hours and 80 carpentry hours. Demand for Products B is unlimited, but at most, 40 Products A are bought each week. The company wants to maximize weekly profit (revenues - costs). a)What are the decision variables (things that can be controlled) in this problem? b)What are the parameters (things that can’t be controlled) in this problem? c)What are the restrictions on this problem? d)How can an objective function be defined?
A company manufactures two types of products: A and B. Product A sells for $27 and uses $10 worth of raw materials. Each Product A that is manufactured increases the company's variable labor and overhead costs by $14. Product B sells for $21 and uses $9 worth of raw materials. Each Product B built increases the company's variable labor and overhead costs by $10. The manufacture of Products A and B requires two types of skilled labor: carpentry and finishing. Each Product A requires 2 hours of finishing labor and 1 hour of carpentry labor. Each Product B requires 1 hour of finishing and 1 hour of carpentry labor. Each week, the company can obtain all the needed raw material but only 100 finishing hours and 80 carpentry hours. Demand for Products B is unlimited, but at most, 40 Products A are bought each week. The company wants to maximize weekly profit (revenues - costs).
a)What are the decision variables (things that can be controlled) in this problem?
b)What are the parameters (things that can’t be controlled) in this problem?
c)What are the restrictions on this problem? d)How can an objective function be defined?
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