In: Operations Management
LP 3. A manufacturer wants to maximize the profit of two products. Product X yields a profit of $ 1.50 per unit, and Product Y yields a profit of $2.00 per unit. Market tests and available resources have indicated the following constraints: The combined production level should not exceed 1200 units per month. The demand for product Y is no more than half the demand for product X. The production level of product X is less than or equal to 600 units plus three times the production level of product Y.
Please provide step by step of how do you solve the constrains. I have been reviewing other posts on the same question, but they do not specify how constraints were solved. I want to learn how to solve it. no just to copy your answer.
Solve using the graphing the intercept with the elimination method. Do not use excel.
Let the no. of product X be x and Product Y be y
Total Profit = 1.5*x + 2*y
We have to maximize this profit
Subject to constraints:
x + y <= 1200
y <= 0.5*x
x <= 600 + 3*y
x - 3y >= 600
We graph the constraints as shown below:
The feasible region is shown hatched in orange. We find the corner points:
Green line = x - 3y = 600, Put y = 0, x = 600
Hence, Point D = (600, 0)
We solve equations for green line and red line above two lines simultaneously
x - 3y = 600...........(1)
x + y = 1200...........(2)
Subtract equations (1) from (2)
(x + y) - (x - 3y) = 1200 - 600
4y = 600
y = 150
Substituting in equation (2)
x + 150 = 1200
x = 1050
Hence, Point C = (1050, 150)
Point A = 0
We solve equations for blue line and red line above two lines simultaneously
y = 0.5x...........(3)
x + y = 1200...........(4)
Substitute equation 3 in 4
x + 0.5x = 1200
x = 800
Substitue in (4)
800 + y = 1200
y = 400
Hence, Point B = (800, 400)
Hence, we get 4 corner points as:
A = (0, 0), B = (800, 400), C = (1050, 150) and D = (600, 0)
We find the objective value as shown below for each point
A = (0, 0); objective = 1.5*x + 2*y = 1.5 * 0 + 2 * 0 = 0
B = (800, 400); objective = 1.5*800 + 2 * 400 = 1200 + 800 = 2000
C = (1050, 150); objective = 1.5*1050 + 2*150 = 1875
D = (600, 0); objective = 1.5*600 + 2*0 = 900
Maximum value = 2000
Hence, the optimum solution = X = 800, Y = 400
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