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A manufacturing company makes two products(window air conditioners = X and centr

ID: 3260481 • Letter: A

Question

A manufacturing company makes two products(window air conditioners = X and central air units = Y). The profit estimates are $1000 for each unit of window unit sold and $1200 for each central air unit sold. The labor-hour requirements for the products in each of the three production departments are summarized below:

(hrs.)

      Department A               Department B                Department C

Product X (window)

8

3

10

Product Y (central air)

12

3

5

The production supervisors in the departments have estimated that the following number of labor-hours will be available during the next month: 48 hours in department A, 18 hours in department B, and 40 hours in department C. Assuming that the company is interested in maximizing profits, formulate a linear program for this problem.

What should Pat produce for the optimal product selection?

Max 1000X + 1200Y

s.t.

8x+12y<=48

3x+ 3y <=18

10x + 5y <=40

End

LP OPTIMUM FOUND AT STEP      2

        OBJECTIVE FUNCTION VALUE

        1)      5400.000

  VARIABLE        VALUE          REDUCED COST

         X         3.000000          0.000000

         Y         2.000000          0.000000

Answer this question using this output.

A .Pat should make 2 window unit and 2 central air units for an expected profit of $4400.

b. Pat should make 3 window unit and 2 central air units for an expected profit of $4500.

c. Pat should make 2 window unit and 3 central air units for an expected profit of $5400.

d. Pat should make 3 window unit and 2 central air units for an expected profit of $5400.

(hrs.)

      Department A               Department B                Department C

Product X (window)

8

3

10

Product Y (central air)

12

3

5

Explanation / Answer

The profit estimates are $1000 for each unit of window unit sold and $1200 for each central air unit sold.

so, the total expected profit = 1000 * X + 1200 * Y ; if X units of window unit sold and Y unit of central air unit is sold.

Now labour time is given for each of these product and departments , considering those constraints we construct the above mentioned LPP and the outcome is

Max Expected Profit = 5400

X = 3 and Y = 2

i.e Pat should make 3 window unit and 2 central air unit for an expected profit of 5400 given the constraints!

So your answer is (d)

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