Solve the following Network Problems. Do graphical method, excel, and pom-qm. The Research and Development Division of the Emax Corporation has developed three new products. A decision now needs to be made on which mix of these products should be produced. Management wants primary consideration given to three factors: maximizing total profit, stability in the workforce, and achieving a decrease in the company’s expenses next year from the $60 million incurred this year. The impact of each of the new products (per unit rate of production) on each of these factors is shown in the following table: FACTOR UNIT CONTRIBUTION UNIT CONTRIBUTION UNIT CONTRIBUTION GOAL UNITS PENALTY PRODUCT PRODUCT PRODUCT 1 2 3 TOTAL PROFIT 14 9 16 ≥135 MILLIONS OF DOLLARS 4 EMPLOYMENT LEVEL 6 2 4 =45 HUNDREDS OF EMPLOYEES 3(+), 5(-) EXPENSES NEXT YEAR 6 6 8 ≤60 MILLIONS OF DOLLARS 2 Formulate a linear programming model for this problem. Use excel solver method to solve this model.

Solve the following Network Problems. Do graphical method, excel, and pom-qm. The Research and Development Division of the Emax Corporation has developed three new products. A decision now needs to be made on which mix of these products should be produced. Management wants primary consideration given to three factors: maximizing total profit, stability in the workforce, and achieving a decrease in the company’s expenses next year from the $60 million incurred this year. The impact of each of the new products (per unit rate of production) on each of these factors is shown in the following table: FACTOR UNIT CONTRIBUTION UNIT CONTRIBUTION UNIT CONTRIBUTION GOAL UNITS PENALTY PRODUCT PRODUCT PRODUCT 1 2 3 TOTAL PROFIT 14 9 16 ≥135 MILLIONS OF DOLLARS 4 EMPLOYMENT LEVEL 6 2 4 =45 HUNDREDS OF EMPLOYEES 3(+), 5(-) EXPENSES NEXT YEAR 6 6 8 ≤60 MILLIONS OF DOLLARS 2 Formulate a linear programming model for this problem. Use excel solver method to solve this model.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section9.2: Elements Of Decision Analysis

Problem 2P

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FACTOR	UNIT CONTRIBUTION	UNIT CONTRIBUTION	UNIT CONTRIBUTION	GOAL	UNITS	PENALTY
	PRODUCT	PRODUCT	PRODUCT
	1	2	3
TOTAL PROFIT	14	9	16	≥135	MILLIONS OF DOLLARS	4
EMPLOYMENT LEVEL	6	2	4	=45	HUNDREDS OF EMPLOYEES	3(+), 5(-)
EXPENSES NEXT YEAR	6	6	8	≤60	MILLIONS OF DOLLARS	2