A company produces three products, A, B, and C. The sales volume for A is at least 50% of the total sales of all three products. However, the company cannot sell more than 80 units of A perday. The three products use one raw material, of which the maximum daily availability is 240 lb. The usage rates of the raw material are 2 lb per unit of A, 4 lb per unit of B, and 3 lb per unit of C. The unit prices for A, B, and C are $20, $50, and $35,respectively.i)Determine the optimal product mix for the company.ii)Determine the dual price of the raw material resource and its allowable range. Ifavailable raw material is increased by 120 lb, determine the optimal solution and thechange in total revenue using the dual price.iii)Use the dual price to determine the effect of changing the maximum demand forproduct A by {10 units.Please note that question (i)should be completed using the simplex method

A company produces three products, A, B, and C. The sales volume for A is at least 50% of the total sales of all three products. However, the company cannot sell more than 80 units of A perday. The three products use one raw material, of which the maximum daily availability is 240 lb. The usage rates of the raw material are 2 lb per unit of A, 4 lb per unit of B, and 3 lb per unit of C. The unit prices for A, B, and C are $20, $50, and $35,respectively.i)Determine the optimal product mix for the company.ii)Determine the dual price of the raw material resource and its allowable range. Ifavailable raw material is increased by 120 lb, determine the optimal solution and thechange in total revenue using the dual price.iii)Use the dual price to determine the effect of changing the maximum demand forproduct A by {10 units.Please note that question (i)should be completed using the simplex method

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter11: Simulation Models

Section: Chapter Questions

Problem 69P: The Tinkan Company produces one-pound cans for the Canadian salmon industry. Each year the salmon...

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