Determine the optimal mix of products

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Question - A small firm makes three similar products, which all follow the same three-step process, consisting of milling, inspection, and drilling. Product A requires 12 minutes of milling, 5 minutes for inspection, and 10 minutes of drilling per unit; product B requires 10 minutes of milling, 4 minutes for inspection, and 8 minutes of drilling per unit; and product C requires 8 minutes of milling, 4 minutes for inspection, and 16 minutes of drilling per unit. The department has 20 hours available during the next period for milling, 15 hours for inspection, and 24 hours for drilling.  Product A contributes $2.40 per unit to profit, product B contributes $2.50 per unit, and product C contributes $3.00 per unit.

Required - Determine the optimal mix of products in terms of maximizing contributions to profits for the period. Then, find the range of optimality for the profit coefficient of each variable.

Reference no: EM133188602

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