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A small firm makes three products, which all follow the same three step process, which consists of milling, inspection, and drilling. Product A requires 6 minutes of milling, 5 minutes of inspection, and 4 minutes of drilling; product B requires 2.5 minutes of milling, 2 minutes of inspection, and 2 minutes of drilling; and product C requires 5 minutes of milling, 4 minutes of inspection, and 8 minutes of drilling. The department has 20 hours available during the next period for milling, 15 hours for inspection, and 24 hours for drilling. Product A contributes $6.00 per unit to profit, product B contributes $4.00 per unit, and product C contributes $10.00 per unit.

Determine the optimum mix of products in terms of maximizing contributions to profits for the next period. Show all work.

Statistics and Probability, Statistics

  • Category:- Statistics and Probability
  • Reference No.:- M9394174

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