3. Suppose you Donald Inc. is managing production of three products (X, Y, Z) in three different locations (A, B, C). In each location facilities can run up to 8 hours per day. The table below provides data about productivity per hour at each location. Production per hour Price location A location B location C Product X 2 1 3 200 Product Y 3 2 180 Product Z 2 3 1 150 Donald Inc. is renting the production space in each location. Current rent agreements allow for up to 250, 300, and 250 days of production in locations A, B, and C respectively. a) Determine the optimal product mix of X, Y, and Z and production locations. b) If Donald Inc. wanted to rent additional days of production where would they be most likely to expand? c) What is the maximum they would be willing to pay to rent another day at each location? d) What are the ranges for each of the location rent constraints within which the solutions will not change?
3. Suppose you Donald Inc. is managing production of three products (X, Y, Z) in three different locations (A, B, C). In each location facilities can run up to 8 hours per day. The table below provides data about productivity per hour at each location. Production per hour Price location A location B location C Product X 2 1 3 200 Product Y 3 2 180 Product Z 2 3 1 150 Donald Inc. is renting the production space in each location. Current rent agreements allow for up to 250, 300, and 250 days of production in locations A, B, and C respectively. a) Determine the optimal product mix of X, Y, and Z and production locations. b) If Donald Inc. wanted to rent additional days of production where would they be most likely to expand? c) What is the maximum they would be willing to pay to rent another day at each location? d) What are the ranges for each of the location rent constraints within which the solutions will not change?
Chapter1: An Overview Of Strategic Marketing
Section1.2: Dollar Shave Club: The Company For Men
Problem 1C
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![3. Suppose you Donald Inc. is managing production of three products (X, Y, Z) in three
different locations (A, B, C). In each location facilities can run up to 8 hours per day.
The table below provides data about productivity per hour at each location.
Production per hour
Price
location A
location B
location C
Product X
2
1
3
200
Product Y
3
2
2
180
Product Z
3
1
150
Donald Inc. is renting the production space in each location. Current rent agreements
allow for up to 250, 300, and 250 days of production in locations A, B, and C
respectively.
a) Determine the optimal product mix of X, Y, and Z and production locations.
b) If Donald Inc. wanted to rent additional days of production where would they be most
likely to expand?
c) What is the maximum they would be willing to pay to rent another day at each
location?
d) What are the ranges for each of the location rent constraints within which the
solutions will not change?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F01b7a54c-2efe-4572-a02a-04be32ac028c%2F7d5a0bbe-2722-4aaa-a811-7ec25764b83b%2Ftgju3va_processed.png&w=3840&q=75)
Transcribed Image Text:3. Suppose you Donald Inc. is managing production of three products (X, Y, Z) in three
different locations (A, B, C). In each location facilities can run up to 8 hours per day.
The table below provides data about productivity per hour at each location.
Production per hour
Price
location A
location B
location C
Product X
2
1
3
200
Product Y
3
2
2
180
Product Z
3
1
150
Donald Inc. is renting the production space in each location. Current rent agreements
allow for up to 250, 300, and 250 days of production in locations A, B, and C
respectively.
a) Determine the optimal product mix of X, Y, and Z and production locations.
b) If Donald Inc. wanted to rent additional days of production where would they be most
likely to expand?
c) What is the maximum they would be willing to pay to rent another day at each
location?
d) What are the ranges for each of the location rent constraints within which the
solutions will not change?
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