Tasamo makes two types of vehicle - SUV and Pickup Truck. These vehicles require

Question

Tasamo makes two types of vehicle - SUV and Pickup Truck. These vehicles require three types of special materials: material A material B material C. Each SUV requires 30 pounds of material A, 20 pounds of material B, and 50 pounds of material C. Each Pickup Truck requires 30 pounds of material A, 40 pounds of material B, and 80 pounds of material C. The profit for each SUV is S3000 and the profit for each Pickup Truck is $5500. Due to suppliers' capacity limits, Tony a only obtain 6000 pounds of material A, 5000 pounds of material B, and 6500 pounds of material C per month. Tasamo also needs to produce at least 50 SUV per month to fulfill a contract. Tasamo wants to find a production plan (i.e., the number of SUV and Pickup Truck to make) to maximize his monthly profit. Let x be the number of SUV to make per month. Let y be the number of Pickup Truck to make per month. Tasamo has formulated this decision problem as a linear program and solved it with Excel Solver. Tasamo obtained the following report from Excel Solver. Variable Cells Use the report to answer the following questions. What is the maximum profit at the optimal solution? Suppose the profit per SUV becomes $2700 per vehicle, should Tasamo change the production plan? [Type Yes or No in the If Tasamo can get 100 more pounds of Material B per month, how much would the objective function value change?

Explanation / Answer

1- Maximum profit=150*3000+50*5500=725000

2-Yes-Since the allowable decrease is 250 and 2700 is less than (3000-250=2750)

3-Material B has shadow price of 125 so the objective function will increase by 125*100=12500 with 100 more pounds of Material B.

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