Use linear programming to determine optimal product mix

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Reference no: EM132242664

Jeep makes two types of cars, the Model E and the Model F. The Model E is sold for $70,000 and the Model F is sold for $120,000. At these prices, weekhy demand for the Model E would be 1,000 units per week and Model F would be 500 units per week. Raw materials for Model E cost $45,000 per unit and for the Model F cost $40,000 per unit. There are four types of resources (A, B, C and D) used in the manufacture of these products and there is only one resource of each type. The processing time, in minutes, needed to manufacture the parts for each product are:

Resource A: Model E - 15mins, Model F - 10mins

Resource B: Model E - 15mins, Model F - 30mins

Resource C Model E - 15mins, Model F - 5mins

Resource D Model E - 10mins, Model F - 5mins

Each of these resources are available to operate for 2.400 minutes/week, and all the enterprise's costs and expenses except for those associated with raw materials -amount of $6,000,000/week. The question is how many Model E and Model F should Jeep produce so that the enterprise's profit are maximized.

Use linear programming to determine the optimal product mix. Using this product mix, how much money will Jeep make (inclusing all expenses) per week (round to the nearest whole dollar)

Reference no: EM132242664

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