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A company builds furniture. Recently different woods they use have become harder to obtain. Consultation with management for 2 lines has resulted in the following product functions for hardwood usage in the two products, products Y and K.
Product Y Y=2Ty-.001Ty^2Product K K=20Tk-,01Tk^2
Y=units of product YK=units of product KTy= wood used in product YTk= wood used in product K
Product Y can be sold at a profit if $100 per unit, and product K can be sold at a profit of $25 each. The company has 1,300 units of wood. How should that be allocated? Why?
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We operate 300 days per year and have found that an order must be placed with our supplier 6 working days before we can expect to receive that order.
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