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A company has two products that they refer to as A and B. Each A produced adds $4 to the corporate profits and each B produced adds $7. Each product must go through two steps in the assembly process: Bending and Boxing. In the Bending step each A requires 2 man-hours and each B require 4 but there are only 1000 man-hours available during the next planning period. In the Boxing step each A requires 17 square feet of corrugated board and each B requires twice this, but there is only 21000 square feet available in the upcoming period. If the demand for A is 300 units and the demand for B is 500 units, how many of each should be produced in order to maximize their corporate profit?

Operation Management, Management Studies

  • Category:- Operation Management
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