A firm that assembles refrigerators and stoves is about to start production of new models of each. Each model will require assembly time, inspection time, and storage space. The amounts of each of these resources that can be devoted to the production of the items is limited. The manager of the firm would like to determine the quantity of each item to produce in order to maximize the profit generated by sales. He has the following data at his disposal: Refridgerators Stoves Profit per unit $60 $50 Assembly time per unit 4 hours 10 hours Inspection time per unit 2 hours 1 hour Storage space per unit 3 cubic feet 3 cubic feet Other information Resource Amount of time available Assembly time 100 hours Inspection time 22 hours Storage space 39 cubic feet Questions - •Identify the feasible solution space. •At which point will profit be maximized?

A firm that assembles refrigerators and stoves is about to start production of new models of each. Each model will require assembly time, inspection time, and storage space. The amounts of each of these resources that can be devoted to the production of the items is limited. The manager of the firm would like to determine the quantity of each item to produce in order to maximize the profit generated by sales. He has the following data at his disposal: Refridgerators Stoves Profit per unit $60 $50 Assembly time per unit 4 hours 10 hours Inspection time per unit 2 hours 1 hour Storage space per unit 3 cubic feet 3 cubic feet Other information Resource Amount of time available Assembly time 100 hours Inspection time 22 hours Storage space 39 cubic feet Questions - •Identify the feasible solution space. •At which point will profit be maximized?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter6: Optimization Models With Integer Variables

Section6.4: Fixed-cost Models

Problem 18P

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