The company must produce 2000 units of A weekly. The company can purchase up to 1 ton of the raw material for $4/lb from one source and an unlimited amount from another source for $5.50/lb. The firm has 900 hr of labor available at $8/hr, and an additional 200 hr of overtime available at S12/hr. The company pays only for the labor and raw material it uses. Formulate a LPP to determine how many hours should each machine be used to meet demands at minimum cost? Hint: To incorporate the labor and raw material into the function to be optimized, divide the total raw material into two increments, say M, and M2, and divide the total labor into two increments, say L, and Ly. (Hint: try to write cost function only in terms of M,,M,, L, and L)

The company must produce 2000 units of A weekly. The company can purchase up to 1 ton of the raw material for $4/lb from one source and an unlimited amount from another source for $5.50/lb. The firm has 900 hr of labor available at $8/hr, and an additional 200 hr of overtime available at S12/hr. The company pays only for the labor and raw material it uses. Formulate a LPP to determine how many hours should each machine be used to meet demands at minimum cost? Hint: To incorporate the labor and raw material into the function to be optimized, divide the total raw material into two increments, say M, and M2, and divide the total labor into two increments, say L, and Ly. (Hint: try to write cost function only in terms of M,,M,, L, and L)

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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