6. A firm produces four products: A, B, C. and D. Each unit of product A requires two hours of assembly, one hour of finishing, and P10 worth of in-process inventory. Each unit of product B requires 1 hour of assembly, 3 hours of finishing, and P5 worth of in-process inventory. Each unit of product of C requires 2.5 hours of assembly, 2.5 hours of finishing, and P2 worth of in-process inventory. Finally each unit of product D requires five hours of assembly, no finishing, and P12 worth of in-process inventory. The firm has 120,000 hours assembly time and 160,000 hours of finishing time available. In addition, not more than P1 million may be tied up in-process inventory. Each unit of product A returns a profit of P40; each unit of product B returns a profit of P24; each unit of product C returns a profit of P36; and each unit of product D returns a profit of P23. Not more than P20,000 units of product A can be sold; not more than 16,000 units of product C sold; any number of units of products B and D may be sold. However, at least 10,000 units of product D must be produced and sold to satisfy a contract requirement. The objective of the firm is to maximize the profit resulting from the sales of the four products.
6. A firm produces four products: A, B, C. and D. Each unit of product A requires two hours of assembly, one hour of finishing, and P10 worth of in-process inventory. Each unit of product B requires 1 hour of assembly, 3 hours of finishing, and P5 worth of in-process inventory. Each unit of product of C requires 2.5 hours of assembly, 2.5 hours of finishing, and P2 worth of in-process inventory. Finally each unit of product D requires five hours of assembly, no finishing, and P12 worth of in-process inventory. The firm has 120,000 hours assembly time and 160,000 hours of finishing time available. In addition, not more than P1 million may be tied up in-process inventory. Each unit of product A returns a profit of P40; each unit of product B returns a profit of P24; each unit of product C returns a profit of P36; and each unit of product D returns a profit of P23. Not more than P20,000 units of product A can be sold; not more than 16,000 units of product C sold; any number of units of products B and D may be sold. However, at least 10,000 units of product D must be produced and sold to satisfy a contract requirement. The objective of the firm is to maximize the profit resulting from the sales of the four products.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter4: Linear Programming Models
Section: Chapter Questions
Problem 111P
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