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

question 9

Essay

A company has the following usage of inputs, constraints on inputs and profit margins to make their three products.
$$\begin{array} { l l l l l } \text { Product } & \text { Wiring } & \text { Drilling } & \text { Assembly } & \text { Profit } \\\text { X202 } & 0.47 & 0.28 & 0.55 & 15 \\\text { Y303 } & 0.61 & 0.43 & 0.61 & 18 \\\text { Z404 } & 0.37 & 0.2 & 0.29 & 13.1\end{array}$$ 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. The company must make at least 825 X202, 475 Y303 and 625 Z404.
a) How many units of each product will be made?
b) What is the maximum profit?
c) Which input has the least amount of slack?

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Definitions:

Shortage/Surplus

A state in the marketplace where the demand for a good surpasses its supply, causing a shortage, or where the supply of a product outpaces its demand, resulting in a surplus.

Demand Schedule

A chart detailing the amount of a product that buyers are ready and capable of buying at different price levels.

Supply Schedule

A table or graph showing the quantity of a product that producers are willing to supply at different prices over a specified period.

Supply Curve

An illustrated depiction that maps out the connection between a product's price and the volume of the product that providers are ready to sell.