Instructor: Pradeep Kumar Sahoo

Q. 1: ABC Computer Company makes quarterly decisions about their product mix. The company is considering only two of their products, notebook computers and desktop computers. ABC Computer Company would like to know how many of each product to produce in order to maximize profit for the quarter.

There are a number of limits on what ABC Computer Company can produce. The major constraints are as follows:

Each computer (either notebook or desktop) requires a Processing Chip. Due to tightness in the market, our supplier has allocated 10,000 such chips to us.

Each computer requires memory. Memory comes in 16MB chip sets. A notebook computer has 16MB memory installed (so needs 1 chip set) while a desktop computer has 32MB (so requires 2 chip sets). We received a great deal on chip sets, so have a stock of 15,000 chip sets to use over the next quarter.

Each computer requires assembly time. Due to tight tolerances, a notebook computer takes more time to assemble: 4 minutes versus 3 minutes for a desktop. There are 25,000 minutes of assembly time available in the next quarter.