How many of each item should produce to maximize profits


A company manufactures two products, Product A and Product B. The wholesale price and manufacturing cost of each product are shown below.

Item Price Cost Assembly Times (hr)
A $20 $10 2
B $45 $20 4

The company will produce a minimum of 10,000 of each item. Given the number of hours, the company can sell no more than 18,000 of Item A and 20,000 of Item B. Suppose the company has 100,000 hours of assembly time available, how many of each item should it produce in order to maximize profits while meeting all necessary constraints? Give the LP Model and use both the graphical method and Excel to find the optimal solution.

Request for Solution File

Ask an Expert for Answer!!
Basic Statistics: How many of each item should produce to maximize profits
Reference No:- TGS0108150

Expected delivery within 24 Hours