# Quality Air Conditioning manufactures three home air conditioners: an economy model, a standard model, and a deluxe

## Question:

For the coming production period, the company has 200 fan motors, 320 cooling coils, and 2400 hours of manufacturing time available. How many economy models (E), standard models (S), and deluxe models (D) should the company produce in order to maximize profit? The linear programming model for the problem is as follows.

Max 63E + 95S + 135D

s.t.

1E + 1S + 1D ‰¤ 200 Fan motors

1E + 2S + 4D ‰¤ 320 Cooling coils

8E + 12S + 14D ‰¤ 2400 Manufacturing time

E, S, D ‰¥ 0

The computer solution using The Management Scientist is shown in Figure.

THE MANAGEMENT SCIENTIST SOLUTION FOR THE QUALITY AIR CONDITIONING PROBLEM

a. What is the optimal solution, and what is the value of the objective function?

b. Which constraints are binding?

c. Which constraint shows extra capacity? How much?

d. If the profit for the deluxe model were increased to $150 per unit, would the optimal solution change? Use the information in Figure 8.19 to answer thisquestion.

## Step by Step Answer:

**Related Book For**

## Quantitative Methods For Business

**ISBN:** 148

11th Edition

**Authors:** David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey Cam