Question: 1 2 . 8 - 2 . * The Dorwyn Company has two new products that will compete with the two new products for the
The Dorwyn Company has two new products that will compete with the two new products for the Wyndor Glass Codescribed in Sec. Using units of hundreds of dollars for the objective function, the linear programming model shown below has been formulated to determine the most profitable product mix.
Maximize
subject to
and
However, because of the strong competition from Wyndor, Dorwyn management now realizes that the company will need to make a strong marketing effort to generate substantial sales of these products. In particular, it is estimated that achieving a production and sales rate of units of Product per week will require weekly marketing costs of hundred dollars. The corresponding marketing costs for Product are estimated to be hundred dollars. Thus, the objective function in the model should be
Dorwyn management now would like to use the revised model to determine the most profitable product mix.
a Verify that is an optimal solution by applying the KKT conditions.
b Construct tables to show the profit data for each product when the production rate is
c Draw a figure like Fig. that plots the weekly profit points for each product when the production rate is Connect the pairs of consecutive points with dashed line segments.
d Use separable programming based on this figure to formulate an approximate linear programming model for this problem.
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