Question: 2. Valu-Com Electronics manufactures two different models of telecommunication interface cards for personal computers. As summarized in the following table, each device requires different amounts

2. Valu-Com Electronics manufactures two different models of telecommunication interface cards for personal computers. As summarized in the following table, each device requires different amounts of PC board, resistors, memory chips, and assembly.

Per unit requirement

HyperLink

FastLink

PC Board (square inches)

20

15

Resistors

28

24

Memory chips

8

8

Assembly labor (in hrs)

0.75

0.6

The wholesale price and the manufacturing cost for each model are as follows:

Per unit revenue/cost

HyperLink

FastLink

Wholesale Price

$189

$149

Manufacturing Cost

$136

$101

In their next production period, Valu-Com has 80,000 square inches of PC board, 100,000 resistors, 30,000 memory chips, and 5,000 hours of assembly time available. The company can sell all the products it can manufacture, but the marketing department wants to be sure that they produce at least 1,000 units of each product. Valu-Com would like to know how many of each product to produce in order to maximize the total profit.

Please formulate an LP model for this problem.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!