Solve the following Network Problems. Do graphical method, excel, and pom-qm.The Research and Development Division of the Emax Corporation has developed three new products. A decision now needs to be made on which mix of these products should be produced. Management wants primary consideration given to three factors: maximizing total profit, stability in the workforce, and achieving a decrease in the company’s expenses next year from the $60 million incurred this year.The impact of each of the new products (per unit rate of production) on each of these factors is shown in the following table:FACTORUNIT CONTRIBUTIONUNIT CONTRIBUTIONUNIT CONTRIBUTIONGOALUNITSPENALTY PRODUCTPRODUCTPRODUCT 123 TOTAL PROFIT14916≥135MILLIONS OF DOLLARS4EMPLOYMENT LEVEL624=45HUNDREDS OF EMPLOYEES3(+), 5(-)EXPENSES NEXT YEAR668≤60MILLIONS OF DOLLARS2Formulate a linear programming model for this problem.Use excel solver method to solve this model.

Linear Programming is a mathematical and statistical tool that is used in operations management to…

Answered: Solve the following Network Problems.…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Solve the following Network Problems. Do graphical method, excel, and pom-qm.

The Research and Development Division of the Emax Corporation has developed three new products. A decision now needs to be made on which mix of these products should be produced. Management wants primary consideration given to three factors: maximizing total profit, stability in the workforce, and achieving a decrease in the company’s expenses next year from the $60 million incurred this year.

The impact of each of the new products (per unit rate of production) on each of these factors is shown in the following table:

FACTOR	UNIT CONTRIBUTION	UNIT CONTRIBUTION	UNIT CONTRIBUTION	GOAL	UNITS	PENALTY
	PRODUCT	PRODUCT	PRODUCT
	1	2	3
TOTAL PROFIT	14	9	16	≥135	MILLIONS OF DOLLARS	4
EMPLOYMENT LEVEL	6	2	4	=45	HUNDREDS OF EMPLOYEES	3(+), 5(-)
EXPENSES NEXT YEAR	6	6	8	≤60	MILLIONS OF DOLLARS	2

Formulate a linear programming model for this problem.
Use excel solver method to solve this model.

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