Non-linear programming A firm offers three different prices on its products, depending upon the quantity purchased. Since available resources are limited, thefirm would like to prepare an optimal production plan to maximize profits. Product 1 has the following profitability: $13 each for the first65 units, $12 each for units 66–130, and $11 for each unit over 130. Product 2's profitability is $17 each for the first 40 units, $16 each forunits 41-80, and $15 each for each unit over 80. The products each require 3 raw materials to produce (see table below for usagesand available quantities).Available Quantity(pounds)2,3001,700Product 1 usage (poundsProduct 2 usage (poundsper unit)Raw Materialper unit)A7.15151,100Use separable programming to find the optimal production plan.(Leave no cells blank - be certain to enter "O" wherever required. Round the first two answers (units of Product 1 and 2) to thenearest whole number. Round the total profit answer to 2 decimal places and use unrounded unit quantities to compute it.)units of Product 1 andunits of Product 2.The total profit from this plan will be

Separable programming is an alteration to a typical simplex strategy that limits the decision of.…

Answered: A firm offers three different prices on…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 46P

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As manager of the St. Cloud Theatre Company, you have decided that concession sales will support themselves. The following table provides the information you have been able to put together thus far: ITEMSELLING PRICEVARIABLE COST% OF REVENUE Soft Drink$1$0.6025 Wine1.750.9025 Coffee2.000.3530 Candy1.500.2020 You estimate labor cost to be $250.00 (5 booths with 2 people each). Even if nothing is sold, your labor cost will be $250.00, so you decide to consider this a fixed cost. Booth rental, which is a contractual cost at $50.00 for each booth per night, is also a fixed cost. What is the break-even volume per evening performance? How much wine would you expect to sell each evening at the break-even point? If you can solve the question using Excel OM.
A company has the following demand data for the last three years of sales for their popular product B. There are currently 5 workers assigned to the production line, each capable of producing approximately 8 units per month. It is assumed that each month has the same number of production days. They can hire more workers at a hiring and training cost of $800 per worker. If they layoff any workers, the unemployment cost is $2,000 per worker. The product has a standard production cost (labor, material, and overhead) of $300 per unit. The extra cost to produce one unit on overtime is $50 and the maximum overtime is two units per month per worker. They can use inventory but it will cost them $25 per unit per month for any unit in inventory at the end of the month. Failure to meet market demand typically will imply the customer will buy from another supplier, and therefore cost the company $100 in profit. They currently have 0 units in inventory. a. Use the demand data to develop a forecast…

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