A company manufactures three products A, B, and C. Each unit of product A requires 1 hour of engineering service, 10 hours of direct labor, and 3 pounds of material.

Producing one unit of product B requires 2 hours of engineering, 4 hours of direct labor, and 2 pounds of material. Each unit of product C requires 1 hour of engineering, 5 hours of direct labor, and 1 pound of material. There are 100 hours of engineering, 700 hours of direct labor, and 400 pounds of materials available. The cost of production is a nonlinear function of the quantity produced as shown in Table 3.6. Given the unit selling prices of products A, B, and C as $12,

$9 and $7, respectively, formulate a linear mixed integer program to determine the optimal production schedule that will maximize the total profit.

Transcribed Image Text:

TABLE 3.6 Data for Exercise 3.5 Product A Production (Units) 0-40 41-100 101-150 Over 150 Unit Cost ($) 10 9 8 7 Product B Production (Units) 0-50 51-100 Over 100 Unit Cost ($) 6 4 3 Product C Production (Units) 0-100 Over 100 Unit Cost ($) 5 4