Chapter 7 Problem 11 - Profit = $5540 - 1550 = $3990 D....

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Bill Frino Quantitative Decision Making MNMK 413P Monday, March 14, 2011 Chapter 7 Problem #11 A. 25P1 + 28P2 + 30P3 1.5P1 + 3P2 + 2P3 ≤450 2P1 + 1P2 + 2.5P3 ≤350 .25P1 + .25P2 + .25P3 ≤50 P1, P2, P3 ≥ 0 B. The optimal solution is: P 1 = 60 P 2 = 80 Value = 5540 P 3 = 60 This solution provides a profit of $5540. C. Since the solution in part (b) calls for producing all three products, the total setup cost is: $1550 = $400 + $550 + $600. Subtracting the total setup cost from the profit in part (b), we see that
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Unformatted text preview: Profit = $5540 - 1550 = $3990 D. 25P1 + 28P2 + 30P3-400y 1-550y 2-600y 3 1.5P1 + 3P2 + 2P3 450 2P1 + 1P2 + 2.5P3 350 .25P1 + . 25P2 + .25P3 50 P1-175y 1 P2-150y 2 P3-140y 3 P1, P2, P3 0; y1, y2, y3, = 0, 1 E. P1 = 100 y1 = 1 P2 = 100 y2 = 1 P3 = 0 y3 = 0 Value = 4350 The profit associated with this solution is $4350. This is an improvement of $360 over the solution in part (c)....
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Chapter 7 Problem 11 - Profit = $5540 - 1550 = $3990 D....

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