Question

In: Operations Management

LP 3. A manufacturer wants to maximize the profit of two products. Product X yields a...

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.

Solutions

Expert Solution

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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