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    Optimal Product Mix (LP - Simplex)

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    SRISHTI ARORA
    The document describes three optimization problems involving determining the optimal product mix to maximize profits given constraints on available resources. The first problem involves a drug company producing six drugs with constraints on available labor hours and raw materials. The second problem involves a shoe company producing three footwear items with constraints on available labor and machining time. The third problem involves a wood company producing desks and chairs with constraints on available labor hours and wood. In each case, the document provides the relevant costs, revenues and constraints to determine the optimal quantities of each product to produce.

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    © All Rights Reserved
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    Optimal Product Mix (LP - Simplex)

    Uploaded by

    SRISHTI ARORA
    48 views13 pages
    The document describes three optimization problems involving determining the optimal product mix to maximize profits given constraints on available resources. The first problem involves a drug company producing six drugs with constraints on available labor hours and raw materials. The second problem involves a shoe company producing three footwear items with constraints on available labor and machining time. The third problem involves a wood company producing desks and chairs with constraints on available labor hours and wood. In each case, the document provides the relevant costs, revenues and constraints to determine the optimal quantities of each product to produce.

    Original Title

    S26-27_CLO3_ProdOptmztnMix_V1.1_Sol

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    The document describes three optimization problems involving determining the optimal product mix to maximize profits given constraints on available resources. The first problem involves a drug company producing six drugs with constraints on available labor hours and raw materials. The second problem involves a shoe company producing three footwear items with constraints on available labor and machining time. The third problem involves a wood company producing desks and chairs with constraints on available labor hours and wood. In each case, the document provides the relevant costs, revenues and constraints to determine the optimal quantities of each product to produce.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    48 views13 pages

    Optimal Product Mix (LP - Simplex)

    Uploaded by

    SRISHTI ARORA
    The document describes three optimization problems involving determining the optimal product mix to maximize profits given constraints on available resources. The first problem involves a drug company producing six drugs with constraints on available labor hours and raw materials. The second problem involves a shoe company producing three footwear items with constraints on available labor and machining time. The third problem involves a wood company producing desks and chairs with constraints on available labor hours and wood. In each case, the document provides the relevant costs, revenues and constraints to determine the optimal quantities of each product to produce.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
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    Optimal Product Mix (LP - Simplex)

    Q1. A drug company produces six different drugs. Each drug requires labour hours and raw material mentioned in Pounds below. For each dr
    given below in Pounds. Also, Company has a limit of Monthly Capacity in terms of available Labour Hours and Raw Material. This month, ma
    this company maximize its monthly profit? Refer to Q3 details below.
    Q2. Shoe Company produces three types of ethnic footwear - shoes, sandals, and slippers. It makes a profit of $40, $25, and $30 on each pa
    and 45 min of machining time. Each sandal requires 20 minutes of labour time and 25 min of machining time. Each slipper requires 30 minute
    2400 minutes of labour time and 2400 minutes of machining time. How many shoes, sandals, and slippers, it should manufacture to maximize

    Q3. WoodCo produces desks and chairs. It makes a profit of $250 per desk and $150 per chair. Each desk requires 22 sq. ft. of wood and 14
    procures 1200 sq. ft. of wood per month and has available 600 monthly labour hours. How many desks and chairs, it should manufacture to m

    Product Code A B C
    Labor Hours Needed Per Pound of Drug (In Hours) 6 5 4
    Raw Material Required Per Pound of Drug (In Pounds) 3.2 2.6 1.5
    Q1.
    Unit Selling Price per Pound of Drug ($) $ 12.50 $ 11.00 $ 9.00
    Unit Cost Price Per Pound of Drug ($) $ 6.50 $ 5.70 $ 3.60
    Market Demand Limit For Each Drug (Pounds) 960 928 1041
    duct Mix (LP - Simplex)
    ed in Pounds below. For each drug, Unit Cost and Unit Price per Pound is given below. Monthly Demand for each drug is
    d Raw Material. This month, maximumof 4,500 hours of labor and 1,600 pounds of raw material are available. How can

    of $40, $25, and $30 on each pair of shoe, sandal and slipper respectively. Each shoe requires 40 minutes of labour time
    Each slipper requires 30 minutes of labour time and 26 min of machining time. Shoe Company has a weekly capacity of
    should manufacture to maximize the weekly profits?

    equires 22 sq. ft. of wood and 14 labour hours. Each chair requires 18 sq. ft. of wood and 8 labour hours. WoodCo
    hairs, it should manufacture to maximize the monthly profits?

    D E F
    3 2.5 1.5
    0.8 0.7 0.3
    $ 7.00 $ 6.00 $ 3.00
    $ 2.80 $ 2.20 $ 1.20
    977 1084 1055
    Optimal Product Mix (LP - Simpl
    Q. A drug company produces six different drugs. Each drug requires labour hours and raw material mentioned
    below. Monthly Demand for each drug is given below in Pounds. Also, Company has a limit of Monthly Capaci
    4,500 hours of labor and 1,600 pounds of raw material are available. How can this company maximize its mont

    (Hit N Trial) Monthly Drug Production (Pounds)


    Product Code
    (Input 1) Labor Hours Needed Per Pound of Drug (In Hours)
    (Input 2) Raw Material Required Per Pound of Drug (In Pounds)
    Unit Selling Price per Pound of Drug ($)
    Unit Cost Price Per Pound of Drug ($)
    Market Demand Limit For Each Drug (Pounds)
    Unit Profit per Pound of Drug ($)

    =SUMPRODUCT(E11:J11,$E$4:$J$4) Profit ($)

    =SUMPRODUCT($E$4:$J$4,E6:J6) Total Labor Used (Hours)


    =SUMPRODUCT($E$4:$J$4,E7:J7) Total Raw Material Used (Pounds)
    Optimal Product Mix (LP - Simplex)
    hours and raw material mentioned in Pounds below. For each drug, Unit Cost and Unit Price per Pound is given
    pany has a limit of Monthly Capacity in terms of available Labour Hours and Raw Material. This month, maximumof
    an this company maximize its monthly profit?

    0 0 0 596.66667 1084 0
    A B C D E F
    6 5 4 3 2.5 1.5
    3.2 2.6 1.5 0.8 0.7 0.3
    $ 12.50 $ 11.00 $ 9.00 $ 7.00 $ 6.00 $ 3.00
    $ 6.50 $ 5.70 $ 3.60 $ 2.80 $ 2.20 $ 1.20
    960 928 1041 977 1084 1055
    $ 6.00 $ 5.30 $ 5.40 $ 4.20 $ 3.80 $ 1.80

    $ 6,625.20
    Available Limit
    4500 <= 4500
    1236.1333333 <= 1600
    er Pound is given
    month, maximumof
    Optimal Product Mix (L
    Q2. Shoe Company produces three types of ethnic footwear - shoes, sandals, and slipper
    slipper respectively. Each shoe requires 40 minutes of labour time and 45 min of machinin
    time. Each slipper requires 30 minutes of labour time and 26 min of machining time. Shoe
    minutes of machining time. How many shoes, sandals, and slippers, it should manufacture

    (Hit N Trial) Weekly Production (Units)


    Available Product Code
    4500 (Input 1) Labor Time Required Per Unit (Minutes)
    1600 (Input 2) Machining Time Required Per Unit (Minutes)
    Unit Profit ($)

    Profit ($)

    Total Labour Time (Minutes) Available Per Week


    Total Machining Time (Minutes) per Week

    (0,41,52) => 2585


    Optimal Product Mix (LP - Simplex)
    twear - shoes, sandals, and slippers. It makes a profit of $40, $25, and $30 on each pair of shoe, sandal and
    abour time and 45 min of machining time. Each sandal requires 20 minutes of labour time and 25 min of machining
    nd 26 min of machining time. Shoe Company has a weekly capacity of 2400 minutes of labour time and 2400
    and slippers, it should manufacture to maximize the weekly profits?

    0 41 52
    Shoe Sandal Slipper
    40 20 30
    45 25 26
    $ 40.00 $ 25.00 $ 30.00

    $ 2,585.00
    Available Limit
    $ 2,380.00 <= 2400
    $ 2,377.00 <= 2400
    e, sandal and
    25 min of machining
    ime and 2400
    Optimal Product Mix (L
    Q3. WoodCo produces desks and chairs. It makes a profit of $250 per desk and $150 per
    requires 18 sq. ft. of wood and 8 labour hours. WoodCo procures 1200 sq. ft. of wood per
    chairs, it should manufacture to maximize the monthly profits?

    (Hit N Trial) Monthly Production (Units)


    Available Product Code
    4500 (Input 1) Labor Hours Required Per Unit
    1600 (Input 2) Raw Material Required Per Unit
    Unit Profit ($)

    Profit ($)

    Total Labour Hours Available Per Month


    Total Wood Available per Month (square Feet)
    Optimal Product Mix (LP - Simplex)
    ofit of $250 per desk and $150 per chair. Each desk requires 22 sq. ft. of wood and 14 labour hours. Each chair
    o procures 1200 sq. ft. of wood per month and has available 600 monthly labour hours. How many desks and
    profits?

    16 47
    Desks Chairs
    14 8
    22 18
    $ 250.00 $ 150.00

    $ 11,050.00 =SUMPRODUCT(E5:F5,E9:F9)
    Available Limit
    600 <= 600 =SUMPRODUCT(E5:F5,E7:F7)
    1198 <= 1200 =SUMPRODUCT(E5:F5,E8:F8)
    ours. Each chair
    ny desks and

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