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The Aggie Manufacturing Company can sell their three products for $200, $300 and $240, respectively. They can sell all that they can make each period. There are two restricting conditions on the number that can be produced in any period: raw materials and labor. There are 40 units of raw materials and 40 hours of labor available each period. Raw material costs $35 per unit and labor costs are $20 per hour. Only used materials and labor are to be considered in this analysis. Product 1 uses 3 units of raw materials and 20 minutes of labor per unit produced, product 2 uses 2 units of raw materials and 17 minutes of labor per unit produced, and product 3 uses 4 units of raw materials and 19 minutes of labor per unit produced. If product 1 is produced a setup cost of $40 is incurred, product 2’s setup cost is $35, and product 3’s is $28. Formulate an integer/continuous linear model to maximize profits for the Aggie Manufacturing Co.
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