Maximizes revenue, How much of each product do you

Maximizes revenue

Assignment Help Operation Research

Reference no: EM1358806

Q1 Linear Programming -- Product Output

A company produces 3 different products, A, B, and C. All products require time in up to 5 different processing departments. The amount of time each product requires with each department is listed in the table below:

Product A Product B Product C Available

Melting 6 hrs 2 hr 0 hrs 1200 hrs

Cooling 3 hrs 2 hrs 1 hr 1240 hrs

Shaping 3 hrs 2 hrs 1 hr 2000 hrs

Sanding 2 hrs 3 hr 3 hrs 1875 hrs

Painting 1 hr 2 hrs 2 hrs 1550 hrs

Suppose product A sells for $200/unit, product B sells for $225/unit, and product C sells for $125/unit. And suppose that all products have a guaranteed buyer (i.e., no matter how many are produced it will be sold for the asking price). Management has asked for your recommendations about how many of each product type to produce that maximize revenue. So question…

Question:

a) How much of each product do you recommend be produced that you believe maximizes revenue?

b) How much revenue would be made if they followed your recommendation?

Reference no: EM1358806

Questions Cloud

Explain corporate responsibility and corporate philanthropy : Explain What are the differences between corporate responsibility and corporate philanthropy and Explain how a business benefits when it has an impact on the community

Illustrate what means do they use to hedge against exchange : Illustrate what means do they use to hedge against exchange rate risk. Using this information.

Compute the component costs of debt : After collection all the information and prepares the following table - accordingly, compute the component costs of debt, preferred stock, and common stock.

Moderate forms of dementia : Does certain medication have any role to play as far as improving cognitive decline in those with mild to moderate forms of dementia?

Maximizes revenue : How much of each product do you recommend be produced that you believe maximizes revenue? How much revenue would be made if they followed your recommendation?

Challenges therapists face in diagnosing : What are some of the challenges therapists face in diagnosing this population?

What mass can it support in water before sinking : What mass can it support in water before sinking. Two concentric spherical shells with uniformly distributed masses M1 = kg and M2 = kg are situated as shown . Find out the magnitude Find the magnitude of the net gravitational force on a particle ..

Discussion on the scenarios : When the 56 year old organizer of Gulf & Western, Corporation died of a heart attack, the stock price immediately jumped from $18.00 a share to $20.25, a 12.5 percent increase.

Explain general medical makes disposable syringes : Explain General Medical makes disposable syringes for hospitals and doctor supply companies. The company uses cost plus pricing and currently charges 150% of average variable costs.

User Account

All Pages