In the example used to demonstrate model construction in this chapter (p. 4), a firm sells a product, x, for $20 that costs $5 to make, it has 100 pounds of steel to make the product, and it takes 4 pounds of steel to make each unit. The model that was constructed is
maximize Z = 20x - 5x
subject to
4x = 100

Now suppose that there is a second product, y, that has a profit of $10 and requires 2 pounds of steel to make, such that the model becomes
maximize Z = 15x + 10y
subject to
4x + 2y = 100

Can you determine a solution to this new model that will achieve the objective? Explain your answer.

  • CreatedJuly 17, 2014
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