Question

Question: A manufacturing firm has discontinued production of a certain unprofitable product line. Considerable excess production capacity was created as a result. Management is considering devoting this excess capacity to one or more of three products: X1, X2, and X3. Machine hours required per unit are as follows:

              

                                                                           Product

Machine Type	X1	X2	X3
Milling machine	8	2	3
Lathe	4	3	0
Grinder	2	0	1

The available time in machine hours per week is as follows:

Machine Type	Machine Hours Per Week
Milling machine	800
Lathe	480
Grinder	320

The sales people estimate they can sell all the units of X1 and X2 that can be produced; however, the sales potential of X3 is 80 units per week maximum. The unit profits for the three products are as follows:

Product	Unit Profits
X1	$20
X2	$6
X3	$8

Use the Excel solver tool to determine the number of X1, X2, and X3 products to produce.

1. Number of X1 _________    

2. Number of X2 _________      

3. Number of X3 _________    

Use the Excel solver tool to determine the maximized profit for the company.

4. Max profit = _________    

Answer 1

Using the solver, we get optimal solution as :

Number of X1 = 45

Number of X2 = 100

Number of X3 = 80

Max profit = 2140

Solver screnshot

solver formula