Question
In: Statistics and Probability
A company produces six products in the following manner. Each unit of raw material purchased yields...
A company produces six products in the following manner. Each unit of raw material purchased yields 4 units of product 1, 2 units of product 2, and 1 unit of product 3. Up to 1200 units of product 1 can be sold and up to 300 units of product 2 can be sold. Demand for products 3 and 4 is unlimited. Each unit of product 1 produced from raw material can be sold or processed further. Each unit of product 1 that is processed further yields 1 unit of product 4. Each unit of product 2 can be sold or processed further. Each unit of product 2 that is processed further yields 0.8 unit of product 5 and 0.3 unit of product 6.
For products 3 through 6, the production cost is additional to the costs already incurred.
Up to 1000 units of product 5 can be sold, and up to 800 units of product 6 can be sold. Up to 3000 units of raw material can be purchased at $6 per unit. Leftover units of products 5 and 6 must be destroyed. It costs $4 to destroy each leftover unit of product 5 and $3 to destroy each leftover unit of product 6. The selling price and production cost per unit of each product is provided in the table. The cost of raw material is irrelevant to solving this problem and is ignored in the costs provided.
Determine a profit-maximizing production schedule.
MICROSOFT EXCEL SOLVER SOLUTION PLEASE!!!!!!! The other solutions listed for this problem are incorrect.
| Product | Units produced per unit of raw material used | Units produced per unit of Product 1 processed further | Units produced per unit of Product 2 processed further | Max Dem | Selling price | Production cost |
| 1 | 4 | 1200 | 7 | 4 | ||
| 2 | 2 | 300 | 6 | 4 | ||
| 3 | 1 | No limit | 4 | 2 | ||
| 4 | 1 | No limit | 3 | 1 | ||
| 5 | 0.8 | 1000 | 20 | 5 | ||
| 6 | 0.3 | 800 | 35 | 5 | ||
| 3000 | Units of raw material available to purchase | |||||
| $6 | Cost per unit of raw material | |||||
| $4 | Cost to destroy excess Product 5 | |||||
| $3 | Cost to destroy excess Product 6 | |||||
Solutions
orchestra answered 1 year agoRelated Solutions
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2,400
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$
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$
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$
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Per unit sales value if processed further
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