
Jack C. answered 10/08/15
Tutor
4.5
(28)
Former Cal Sate Dominguez Hills Teacher for over fifteen years
This is not a good question.
The optimum solution is to make all the ordinary cases possible. The bottle neck is in machine time at 7,200 minutes available the max production is 400 cases of premium or 600 cases of ordinary.
400 cases x $4= $1,600 for premium
600 cases X $3= $1,800 for ordinary.
The direct material is not a constraint.
The simplex algorithm equation would be;
Maximize Profit = $4 Premium + $3 Ordinary
X Y
Subject to 1 1 >= 5,000 sales contract
18 12 <= 7,200 Machine Time
1 <= 4,000 stock constraint
18 12 <= 7,200 Machine Time
1 <= 4,000 stock constraint
The sales contract constraint creates a situation where there is no solution
The stock constraint is irreverent.