A Company Needs to Purchase Several New Machines to Meet

question 70

Essay

A company needs to purchase several new machines to meet its future production needs. It can purchase three different types of machines A, B, and C. Each machine A costs $80,000 and requires 2,000 square feet of floor space. Each machine B costs $50,000 and requires 3,000 square feet of floor space. Each machine C costs $40,000 and requires 5,000 square feet of floor space. The machines can produce 200, 250 and 350 units per day respectively. The plant can only afford $500,000 for all the machines and has at most 20,000 square feet of room for the machines. The company wants to buy as many machines as possible to maximize daily production.
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Formulate the LP for this problem.

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Definitions:

Formal Mathematical Models

Theoretical frameworks that use mathematical expressions to represent and analyze complex systems or problems.

Tight Bureaucracy

A highly structured organizational form with strict rules, procedures, and hierarchy, emphasizing control and consistency.

Contingency Perspective

An approach suggesting that the best management practices depend on the circumstances of a situation or environment.

Predictable Environment

A setting or situation where changes and conditions can be anticipated with a high degree of certainty.