
Steve C. answered 06/08/15
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Steve C. Math & Chemistry Tutoring
Let x be the number of assortment I items sold
Let y be the number of assortment II items sold
Let z be the number of assortment III items sold
The cost for making assortment I is .20(4) + .25(4) + .30(12) = $5.40
The cost for making assortment II is .20(12) + .25(4) + .30(4) = $4.60
The cost for making assortment III is .20(8) + .25(8) + .30(8) = $6.00
The equation for total cost is: cost = 5.4x + 4.6y +6z
The equation for total income is: income = 9.4x + 7.6y + 11z
The equation for total profit is: profit = (9.4-5.4)x + (7.6-4.6)y + (11-6)z --> 4x + 3y + 5z
The total profit equation is the objective function for this example.
The constraint equations are listed below:
4x + 12y + 8z ≤ 5000 (sour candy)
4x + 4y + 8z ≤ 3800 (lemon candy)
12x + 4y + 8z ≤ 5400 (lime candy)
x ≥ 0
y ≥ 0
z ≥ 0
This system can be solved using the Simplex method:
initial simplex tableau:
x y z s1 s2 s3 n
4 12 8 1 0 0 5000
4 4 8 0 1 0 3800
12 4 8 0 0 1 5400
-4 -3 -5 0 0 0 0
The solution to this is listed below:
x y z s1 s2 s3 n
0 1 0 .125 -.125 0 150
0 0 1 -.0625 .25 -.0625 300
1 0 0 0 -.125 .125 200
0 0 0 .0625 .375 .1875 2750
The maximum profit of $2750 is obtained by selling 200 units of assortment I, 150 units of assortment II, and 300 units of assortment III.
If you are unfamiliar with the Simplex method, here is a good reference: http://college.cengage.com/mathematics/larson/elementary_linear/4e/shared/downloads/c09s3.pdf