Question

The situation is for the company to maximize profit (its objective) through the manufacture of products...

The situation is for the company to maximize profit (its objective) through the manufacture of products

M, B, R, and D. The products have profits per unit and several constraints as depicted in the following

Statement of the problem.

  • Profit 90M + 84B + 70R + 60D
  • Ad budget 10M + 8B + 9R + 15D ≤ 5000
  • Salesforce    2M + 3B + 3R ≤ 1800
  • Production     M   + B + R   + D    = 600
  • Retail                                R             ≥ 150

Non-negativity constraints M, B, R, D ≥ 0.

  1. What is the maximum profit amount and amount of M, B, R, and D at this maximum profit amount?
  2. Change the profit per unit on M to 89 and resolve the problem.
  3. Change the profit per unit on M to 80 and resolve the problem.
  4. Change the profit per unit on D to 61 (making sure the profit on M is back at 90)
  5. Change the profit per unit on D to 105 and resolve the problem.
  6. Change the advertising budget constraint to 5001 and
  7. Change the advertising budget constraint to 5851 and
  8. Change the retail stores requirement constraint to 151
  9. Change the retail stores requirement constraint to 201

Homework Answers

Answer #1

Formulas are as follows:

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