A firm can make four products X1, X2, X3, and X4. The profit from each product is $12, $15, $10, and $18 per unit respectively. Each product uses 2,1.5,3 and 2.5 hours of labor and 3,2,4, and 1.5 machine hours respectively. Sales department also requires that at least 40 units of product X1 and 50 units of product X3 be produced next month. There are 1500 labor hours and 2500 machine hours available next month.

a) Show the mathematical formulation of the problem
b) What is the optimal solution?
c) How much slack and surplus remains in each of the constraints?
d) Explain the meaning of dual value -8.
e) If you could change any number in the RHS by one unit what will you change?
f) If you could shift machine and labor hours and no cost, what will be new profit?

Answer rating: 100% (QA)

a Mathematical formulation of the problem Let x1 x2 x3 x4 be the number of units of products X1 X2 X... View the full answer