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The Ace Manufacturing Company produces two lines of its product, the super and the regular. Resource requirements for production are given in the Table below. There are 1,600 hours of assembly worker hours available per week, 700 hours of paint time, and 300 hours of inspection time. Regular customers will demand at least 150 units of regular line and 90 of the super. Product line Profit Contribution Assembly time (hr.) Paint time (hr.) Inspection time (hr.) Regular $50 1.2 .8 .2 Super $75 1.6 .9 .2 The linear programming formulation for this product mix problem is: Decision variables x1 = units of regular produced x2 = units of super produced Formulation Maximize Z = 50x1 + 75x2 s.t. 1.2x1 + 1.6x2 ≤ 1600 Assembly time .8x1 + .9x2 ≤ 700 Paint time .2x1 + .2x2 ≤ 300 Inspection time x1 ≥ 150 Regular demand x2 ≥ 90 Super demand x1, x2 ≥ 0 Answer the following questions on this page and the next page referring to the above formulation and the printout on the page following the questions a. What is the optimal solution (complete answer!)? b. If demand for regular increased by 10, what will happen to the optimal solution (Z and decision variables)? c. If demand for super increased by 10, what will happen to the optimal solution (Z and decision variables)? d. If the profit contribution of regular decreased to 30, what will happen to the optimal solution (Z and decision variables)? e. If the profit contribution of super decreased to 55, what will happen to the optimal solution (Z and decision variables)?
The Orange Company has introduced a new music device called the J-Pod. The J-Pod is sold through Good Buy, a major electronics retailer. What wholesale price should Orange charge for the J-Pod? At this wholesale price, what retail price should Good ..
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