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Q2  Linear Programming

Suppose your company sells 4 different kinds of pies, Apple Pies, Banana Pies, Cherry Pies, and Danish Pies, where each Apple Pie sells for $8, each Banana Pie sells for $9, each Cherry Pie sells for $7, and each Danish Pie sells for $10.  Further, suppose to make these pies, each must be processed on 2 different machines in your factory and each takes a different amount of time on the two machines.  Specifically, to make one Apple Pie requires 1 hour on machine #1 and 2 hours on machine #2.  To make one Banana Pie requires 2 hours on machine #1 and 3 hours on machine #2.  To make one Cherry Pie requires 2 hours on machine #1 and 1 hour on machine #2.  And to make one Danish Pie requires 1 hour on machine #1 and 0.5 hours on machine #2.  Finally, suppose there can be no more than a total of 150 hours of processing time on machine number 1 and no more than a total of 175 hours of processing time on machine number 2.  Management has asked for your recommendation about how many of each product type to produce that maximizes revenue.

Question:

a) How much of each product do you recommend be produced that you believe maximizes revenue?  

b) How much revenue would be made if they followed your recommendation?

Operation Research, Management Studies

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