Recall the production model from Section 1.3:
Max 10x
s.t.
5x ≤ 40
x ≥ 0
Suppose the firm in this example considers a second product that has a unit profit of $5 and requires 2 hours for each unit produced. Assume total production capacity remains 40. Use y as the number of units of product 2 produced.
a. Show the mathematical model when both products are considered simultaneously.
b. Identify the controllable and uncontrollable inputs for this model.
c. Draw the flowchart of the input-output process for this model.
d. What are the optimal solution values of x and y?
e. Is the model developed a deterministic or a stochastic model? Explain.