The ABC Company produces three electrical products—blenders, choppers, and toasters. The manufacturer has a maximum daily production budget of RM2000 and a maximum of 660 hours of labor. Maximum daily customer demand is for 200 blenders, 300 choppers, and 150 toasters. The unit profit for blender is RM8, choppers, RM10, and toaster, RM7. The company desires to know the optimal product mix that will maximize profit. These products have the following resource requirements as shown in Table 1. After solving the problem using linear programming, Table 4 shows the LP sensitivity report. Based on the report, answer the following questions and justify all your answers. 1. Optimize the Company ABC production using linear programming simplex method. 2. Suppose that the company would like to increase the profit of the toasters to RM9 per unit without affecting the optimum number of products to be produced based on earlier conditions. Based on the Sensitivity Report, advise the company if this can be accomplished and justify your answer. If this can be done, what would be the company’s profit based on new pricing. 3. The company has some extra funds and is trying to increase the company’s profit by either increasing the number of labor hours by hiring more workers or increasing its daily production budget. Based on the Sensitivity Report, propose and justify which course of action should the company choose. 4. Sometimes the company is facing worker absenteeism that reduces the total labor hours to 644 hours. Based on Sensitivity Report, evaluate how this scenario affects the company’s profit

Name: The ABC Company produces three electrical products—blenders, choppers,
Uploaded: 2024-03-20T07:07:26.000Z
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Description: The ABC Company produces three electrical products—blenders, choppers, and toasters. The manufacturer has a maximum daily production budget of RM2000 and a maximum of 660 hours of labor. Maximum daily customer demand is for 200 blenders, 300 choppers

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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The ABC Company produces three electrical products—blenders, choppers, and toasters. The manufacturer has a maximum daily production budget of RM2000 and a maximum of 660 hours of labor. Maximum daily customer demand is for 200 blenders, 300 choppers, and 150 toasters. The unit profit for blender is RM8, choppers, RM10, and toaster, RM7. The company desires to know the optimal product mix that will maximize profit. These products have the following resource requirements as shown in Table 1. After solving the problem using linear programming, Table 4 shows the LP sensitivity report. Based on the report, answer the following questions and justify all your answers.

1. Optimize the Company ABC production using linear programming simplex method.

2. Suppose that the company would like to increase the profit of the toasters to RM9 per unit without affecting the optimum number of products to be produced based on earlier conditions. Based on the Sensitivity Report, advise the company if this can be accomplished and justify your answer. If this can be done, what would be the company’s profit based on new pricing.

3. The company has some extra funds and is trying to increase the company’s profit by either increasing the number of labor hours by hiring more workers or increasing its daily production budget. Based on the Sensitivity Report, propose and justify which course of action should the company choose.

4. Sometimes the company is facing worker absenteeism that reduces the total labor hours to 644 hours. Based on Sensitivity Report, evaluate how this scenario affects the company’s profit.

Resource Requirement
Product
Cost/Unit
Labor hours/Unit
Blender
RM7
2
Chopper
10
3
Toaster
2

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