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A company designs websites for clients. Much of the work is done in-house, but it finds that it must subcontract (i.e., outsource) some work. It charges clients $2500 to build a typical website. While it costs $1000 to design a website in-house, the company pays $1500 for each website. In one month, the company would like to design at least 200 websites total (in-house + outsource), with no more than 100 websites of them sub-contracted. It takes approximately 40 hours to design a website in-house and approximately 20 hours to supervise a website outsourced. Capacity information: Each worker at the averages 12-hour workdays. During the month, there are 26 workdays. The company has 15 workers. Determine the number of sites designed in-house and outsourced to minimize cost while meeting all necessary constraints. Give the LP Model and use both the graphical method and Excel to find the optimal solution.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M945695

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