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Formulate and solve the following problem to maximize profit: Our company sells two types of novelty items to local bookstores. Type 1 generates $3 profit for each unit sold and Type 2 generates $5 profit for each unit sold. Market conditions indicate that we cannot sell more than 4 units of Type 1 and more than 6 units of Type 2. We have 18 hours of labor available. Type 1 and Type 2 products require 3 hours and 2 hours of labor per unit respectively. Inventory policy dictates that we must deplete at least 50 units of raw material. Type 1 items require 3 units of raw material and Type 2 items require 5 units of raw material.

If the labor hours available is increased to 20 does this change the solution? Why or why not?

If profit for Type 2 novelties increases to $6 does this change the solution? Why or why not?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92180328

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