Reference no: EM131696915

Costal Cup Company wants to determine how many cases of large and small cups should be produced per day in order to maximize profit given the labor and material constraints. The unit profit value for large cups is $30 per case, for small cups the unit profit value is $25 per case. There are 120 hours of labor and 2000 units of resin material available per day. Each case of large cups requires .75 hours of labor and 15 units of resin material to produce, each case of small cups requires 1 hour of labor and 12 units of resin material to produce. 

1. Formulate a linear programming model for this problem to determine how many cases of small cups and how many cases of large cups should be produced in order to maximize the total profit.

Let large cups be X, and Let small cups be Y. Given Maximize total = 30x+25y

1. Solve this problem by using the graphing method OR by using Excel Solver.
2. What is the optimal solution?
3. Which constraints are binding?

Note: Instructions for how to add and use the Solver Add-in are located in the Week 1 Instructional Materials: Lecture: Linear Programming Modeling Using Excel.