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We have a product mix problem where we can produce product x and/ or product y. We have two machines 1 and 2, which are both used in production of x and y. Let us define: The contribution per unit of x is P400, and the contribution per unit of y is P360. With slack terms added, our problem is: To maximize Z =P 400x + P 360y +P OS1 + P OS2 Subject to: 5x + 6y + S1 + 0S2 = 260 hours / month Machine 1 constraint 3x + 2y + 0S1 + S2 = 300 hours / month Machine 2 constraint The optimal table is reached for this problem as follows: P 400 Cj P 360 PM Qty S1 S2 X y 400 X 52 1 6/5 1/5 S2 144 -8/5 -3/5 1 P20,800 400 480 80 Zj P20,800 400 480 80 Cj - Zj -120 - 80 Assuming you can produce at the optimal mix, answer the following: 1. How many of each product is produced per month and what is the total monthly contribution? 2. A manufacturer offers P10 per hour as rental fee for using Machine 2. He will use machine 2 for 80 hours per month. Will you accept the offer? 3. One of your customers wishes to purchase two units of y next month. Upon discovering that you do not produce any y's he offers to pay you, so that your profit will not be reduced. How much inerease in the price will he be paying? 4. Assuming you agree to produce the two units of y next month, how many units of x must be deleted from the next month's production schedule? We have a product mix problem where we can produce product x and/ or product y. We have two machines 1 and 2, which are both used in production of x and y. Let us define: The contribution per unit of x is P400, and the contribution per unit of y is P360. With slack terms added, our problem is: To maximize Z =P 400x + P 360y +P OS1 + P OS2 Subject to: 5x + 6y + S1 + 0S2 = 260 hours / month Machine 1 constraint 3x + 2y + 0S1 + S2 = 300 hours / month Machine 2 constraint The optimal table is reached for this problem as follows: P 400 Cj P 360 PM Qty S1 S2 X y 400 X 52 1 6/5 1/5 S2 144 -8/5 -3/5 1 P20,800 400 480 80 Zj P20,800 400 480 80 Cj - Zj -120 - 80 Assuming you can produce at the optimal mix, answer the following: 1. How many of each product is produced per month and what is the total monthly contribution? 2. A manufacturer offers P10 per hour as rental fee for using Machine 2. He will use machine 2 for 80 hours per month. Will you accept the offer? 3. One of your customers wishes to purchase two units of y next month. Upon discovering that you do not produce any y's he offers to pay you, so that your profit will not be reduced. How much inerease in the price will he be paying? 4. Assuming you agree to produce the two units of y next month, how many units of x must be deleted from the next month's production schedule?
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Answer Max z P 360LP400y PoS POsz Brabjeet tu 5276y510S2 3x 240S1 S2 3 00 hours mont... View the full answer
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