1. A "product mix" problem can be solved quite easily by hand, as long as there is only one constraint (i.e. one resource in which demand > capacity). However, when there are multiple constraints it becomes quite complex. In the lab, we used Solver to find the product mix that results in the highest profit, subject to capacity constraints for each resource, and the constraint that we would not make more than the demand for any given product.

   Set up a model based on what was done in the lab to find the optimal product mix for the problem in the attached spreadsheet. What was the resulting total profit?

   		less than $30,000
   		between $30,000 and $30,250
   		between $30,250 and $30,500
   		between $30,500 and $30,750
   		between $30,750 and $31,000
   		more than $31,000

Product A B D E F 0.65 1.55 0.98 2 1.01 0.8 0.95 1.2 2.2 Doo-hickey 1.55 2.46 3.9 1.6 Time required on Simegma 0.58 1.3 2.65 1.5 each workstation Thing-a-ma-jig 0.82 1.7 2.55 (minutes required per 1.99 unit of production) Whatchamacallit 1.1 2.14 4.05 2.58 Prototon 2000 1.04 1.24 4.15 3.07 Forecast demand per week 250 280 280 210 Profit margin per unit $ 12.00 $ 32.50 $ 44.00 $ 22.00 *assume that each machine has 40 hours/week of capacity (2,400 minutes) *assume that production of a specific product should not exceed demand for that product *add a constraint that all production quantities must be integers *use the "Simplex LP" Solving Method in Solver 1.04 160 $ 16.00 110 $ 28.00