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Case Study: Galaxy manufactures two toy models: Space Rays (sold for $15 each) and Zappers (sold for $8 each). It costs $7 to produce a Space Ray, and $3 to produce a Zapper. Manufacturing resources are limited to 1200 pounds of special plastic, and 40 hours of production time per week. Space Rays requires 2 lbs of plastic and 3 minutes of labor per unit. Zappers requires 1 pound of plastic and 4 minutes of labor per unit. In addition, there are two marketing requirements: Requirement 1: Total production cannot exceed 800 units. Requirement 2: Number of Space Rays cannot exceed number of Zappers by more than 450. Define S = Space Ray production quantity, Z = Zapper production quantity. Input and solve the profit-maximization model using Excel Solver.
Questions: Provide your answers to the following questions in the model worksheet.
A) In the optimal strategy, how many Space Rays toy will be produced? How many Zappers toy will be produced? What is the maximum profit?
B) By implementing the optimal strategy, how many pounds of plastic and how many production hours will be used? Report the slack/surplus for all constraints.
C) Which constraints are binding constraints?
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