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Optimization problem (This is a typical Industrial Engineering problem)
A company manufactures two products, A and B.
· Product A can be sold for $145 per unit and B for $75 per unit.
· Management requires that at least 1850 units be manufactured each month.
· Product A requires 5 hours of labor per unit, and product B requires 3 hours.
· The cost of labor is $15 per hour and a total of 8000 hours are available per month.
Using the Excel’s Solver, determine a production schedule of how many of each product to manufacture each month to maximize the company’s profit.
a) How many of each product should they manufacture each month?
b) What will be the monthly profit?
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