Would this be good idea in terms of the new profitability

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Reference no: EM132152767

1. Better Products manufactures three products on two machines. There is $30 profit associated with Product 1, $50 profit with Product 2, and $20 profit with Product 3. Each product requires labor time using machine A and machine B. Product 1 requires 1 hour from machine A and 1 hour from machine B. Product 2 requires 4 hours from machine A and 1 hour from machine B. Product 3 requires 1.5 hours from machine A and .5 hours from machine B. Up to 100 labor hours are available for each machine. Product 1 cannot account for more than 50% of the total units produced, and Product 3 must account for at least 20% of the total units produced. The company wants to maximize profit, and produce only complete products at the end of each production run. Format and solve the linear program in Excel.

2. The current profit is $2000. Suppose that 10 more labor hours for machine A could be bought for $150. Would this be a good idea in terms of the new profitability? Explain your answer and show your work.

3. Reset the linear program to the original solution from problem 1. The labor for machine A will now be 100. What if 10 more hours of labor could be bought for machine B at a cost of $150 . Would this be a good idea in terms of the new profitability? Explain your answer and show your work.

5. Reset the linear program to the original solution from problem 2. What if the company was able to reduce its cost to produce Product 1, and the new profit was $35. How would that change overall profitability? Show your work.

6. Reset the linear program to the original solution from problem 2. What if the company received an order for 15 of Product 2 and had to fill that order. There would be no more Product 2 to fill. How many of each product would now be produced and what would the new profitability be?

Reference no: EM132152767

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