A company produces two products, A and B, which have profits of $9 and $7, respectively. Each unit of product must be processed on two assembly lines, where the required production times are as follows:a. Formulate a linear programming model to determine the optimal product mix that will maximize profit.

	Hours/ Unit
Product	Line 1	Line2
A	11	5
B	6	9
			Constraints
Total Hours	65	40
	A	B
Profits ($)	11	15
Product A			decision variables
Product B
Maximized profits			Objective function

b. What are the sensitivity ranges for the objective function coefficients?

Sensitivity Range for the coefficient of # of units of product A in the objective function
Sensitivity Range for the coefficient of # of units of product B in the objective function

c. Determine the shadow prices for additional hours of production time on line 1 and line 2 and indicate whether the company would prefer additional line 1 or line 2 hours.

Shadow Price for additional hours of production time on Line 1
Shadow Price for additional hours of production time on Line 2
Which one of the two the company would prefer (Line 1 or Line 2?)

Transcribed Image Text:

Resource Requirements per Unit Product Line 1 Line 2 A 11 5 B 6 6. Total Hours 65 40 Resource Requirements per Unit Product Line 1 Line 2 A 11 5 B 6 6. Total Hours 65 40

Answer rating: 100% (QA)

a Hours Unit Product Line 1 Line2 A 11 5 B 6 9 65 40 Constr... View the full answer