A product can be produced on four different machines. Each machine has a fixed setup cost, variable production cost per unit processed, and a given production capacity given below. A total of 2,500 units of the product must be produced. Machine 1 Machine 2 Machine 3 Machine 4 Fixed cost $700 $800 $920 $1,000 Var cost $16 $18 $22 $20 Capacity 900 1,000 1,200 1,600 Answer the following questions: a) What is the value of the objective function? b) At the optimum, what is the capacity utilization (in %) of machine 4 (round to nearest 0.1% but don't include %-sign))? 37.5 c) Suppose marketing has established a price of $19 for this product. How much total profit will you make?
A product can be produced on four different machines. Each machine has a fixed setup cost, variable production cost per unit processed, and a given production capacity given below. A total of 2,500 units of the product must be produced. Machine 1 Machine 2 Machine 3 Machine 4 Fixed cost $700 $800 $920 $1,000 Var cost $16 $18 $22 $20 Capacity 900 1,000 1,200 1,600 Answer the following questions: a) What is the value of the objective function? b) At the optimum, what is the capacity utilization (in %) of machine 4 (round to nearest 0.1% but don't include %-sign))? 37.5 c) Suppose marketing has established a price of $19 for this product. How much total profit will you make?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter6: Optimization Models With Integer Variables
Section: Chapter Questions
Problem 53P
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,