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Suppose the firm in this example considers a second product that has a unit profit of $5 and requires 2 hours for each unit produced. Assume total production capacity remains 40. Use y as the number of product 2 produced.
a.) Show the mathematical model when both products are considered simultaneously.
b.) Identify the controllable and uncontrollable inputs for this model.
c.) Draw the flowchart of the input-output process for this model (see Figure1.5)
d.) What are the optimal solution values of x and y?
e.) Is the model developed a deterministic or a stochastic model? Explain.
Decision Tree Analysis Applied to Capacity Expansion Linear programming and computer simulation models focus on the short term question of how to use existing capacity. But the
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