A small firm makes three similar products, which all follow the same three-step process, consisting of milling, inspection, and drilling. Product A requires 12 minutes of milling, 5 minutes forinspection, and 10 minutes of drilling per unit; product B requires 10 minutes of milling, 4 minutesfor inspection, and 8 minutes of drilling per unit; and product C requires 8 minutes of milling, 4minutes for inspection, and 16 minutes of drilling. The department has 20 hours available duringthe next period for milling, 15 hours for inspection, and 24 hours for drilling. Product A contributes$2.40 per unit to profit, product B contributes $2.50 per unit, and product C contributes $3.00 perunit. Determine the optimal mix of products in terms of maximizing contribution to profits for theperiod. Then, find the range of optimality for the profit coefficient of each variable.
A small firm makes three similar products, which all follow the same three-step process, consisting of milling, inspection, and drilling. Product A requires 12 minutes of milling, 5 minutes for
inspection, and 10 minutes of drilling per unit; product B requires 10 minutes of milling, 4 minutes
for inspection, and 8 minutes of drilling per unit; and product C requires 8 minutes of milling, 4
minutes for inspection, and 16 minutes of drilling. The department has 20 hours available during
the next period for milling, 15 hours for inspection, and 24 hours for drilling. Product A contributes
$2.40 per unit to profit, product B contributes $2.50 per unit, and product C contributes $3.00 per
unit. Determine the optimal mix of products in terms of maximizing contribution to profits for the
period. Then, find the range of optimality for the profit coefficient of each variable.
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How did you calculate the reduced cost, allowable increase, and allowable decrease in the table for range of opitmality?
by Bartleby ExpertHow did you find the solutions in the table for the range of optimality for the profit coefficient?
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