A Company Has the Following Usage of Inputs, Constraints on Inputs

question 36

Essay

A company has the following usage of inputs, constraints on inputs and profit margins to make their three products.
$$\begin{array} { l l l l l } \text { Product } & \text { Wiring } & \text { Drilling } & \text { Assembly } & \text { Profit } \\\text { X202 } & 0.6 & 0.41 & 0.8 & 14 \\\text { Y303 } & 0.1 & 0.57 & 0.47 & 9.75 \\\text { Z404 } & 0.35 & 0.3 & 0.26 & 12.25\end{array}$$ There are maximum amounts of the following: 1625 hours for wiring, 1750 hours for drilling and 1175 hours for Assembly. Make sure that the units produced are integers. Solve for the above problem.
a) How many units of each product will be made?
b) What is the maximum profit?
c) Which input has the most amount of slack?

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Definitions:

Hardware Store

A retail business specializing in selling tools, building materials, and home improvement products for repairs, renovations, and construction projects.

Pure Competition

A market structure characterized by a large number of small firms, a homogeneous product, and free entry and exit, leading to perfect information and prices that reflect supply and demand.

Spices

Aromatic or pungent plant parts, such as seeds, berries, bark, roots, or leaves, used to flavor or color food.

Fast-Food Restaurants

Eateries offering quick service and a range of foods that are prepared and served rapidly.