Assignment:
A production manager wants to determine how many units of each product to produce weekly to maximize weekly profits. Production requirements for the products are shown in the following table.
|
Product
|
Material 1 (lbs.)
|
Material 2 (lbs.)
|
Labor (hours)
|
|
A
|
3
|
2
|
4
|
|
B
|
1
|
4
|
2
|
|
C.
|
5
|
none
|
3.5
|
Material 1 costs $7 a pound, material 2 costs $5 a pound, and laor costs $15 per hour. Product A sells for $101 a unit, product B sells for $ 67 a unit, and product C sells for $97.50 a unit. Each week there are 300 pounds of material 1; 400 pounds of material 2; and 200 hours of labor. Also, there is a weekly demand of at least 10 units of product C each week.
Formulate the given problem scenario as a linear program, and solve the problem using Microsoft Excel Solver. For the formulation, provide a complete description of the decision variables used along with their units and also label the constraints mentioned in the problem as completely as possible. Also, the Excel set-up should provide clearly labeled values used for the decision variables, constraints, and objective function.