PRODUCT MIX SOLVER PROBLEM : INTEGER SOLUTION REQUIRED

YOU WORK FOR A DRUG COMPANY THAT MAKES 6 PRODUCTS

SEE TABLE BELOW ( ONE MONTH OF DATA)
PRODUCT 1 REQUIRES 6 HRS OF LABOR, 3.2 LBS OF RAW MATERIALS, SELLS FOR $12.50 PER POUND, HAS A COST TO
THE COMPANY SEEKS TO MAXIMIZE PROFIT , BUT HAS AVAILABLE ONLY 4,500 HOURS OF LABOR AND 1,600 POUNDS
CONSTRAINTS: LABOR USED < AVAILABLE, RAW MATERIAL USED < AVAILABLE, DO NOT EXCEED DEMAND PER PRO

Product Number 1 2 3

Pounds Manufactured ? ? ? ?

Labor (hrs per pound produced) 6 5 4

Raw Material (lbs per pound produced) 3.2 2.6 1.5
Unit price (per pound) $ 12.50 $ 11.00 $ 9.00
Variable cost (per pound) $ 6.50 $ 5.70 $ 3.60
Demand (pounds) 960 928 1041

QUESTION:
FIND POUNDS TO MANFACTURE FOR EACH PRODUCT SUCH THAT PROFIT IS MAXIMIZED.
CONSTRAINTS MUST BE SATISFIED.
INTEGER SOLUTION REQUIRED.

ANSWER:
 PER POUND, HAS A COST TO MANUFACTURE OF $6.50 PER POUND
F LABOR AND 1,600 POUNDS OF RAW MATERIAL
T EXCEED DEMAND PER PRODUCT

4 5 6

? ? ?

3 2.5 1.5
0.8 0.7 0.3
$ 7.00 $ 6.00 $ 3.00
$ 2.80 $ 2.20 $ 1.20
977 1084 1055

FIT IS MAXIMIZED.