A Company Makes 2 Products a and B from 2

question 16

Essay

A company makes 2 products A and B from 2 resources. The products have the following resource requirements and produce the accompanying profits. The available quantity of resources is also shown in the table.
$$\begin{array} { l l l c } \text { Product } & 1 & 2 & \text { Available resaurces } \\\hline \text { Labor (hr/unit) } & 3 & 2 & 150 \\\text { Material (aunces/unit) } & 1 & 2 & 200 \\\text { Profit( /unit) } & 7 & 6 &\end{array}$$ Management has developed the following set of goals
Goal 1: Produce approximately 40 urits of product 1
Goal 2: Produce approxinately 70 urits of product 2
Goal 3: Achieve a profit aver $400.
Goal 4: Consume less than 150 hours of labor
Goal 5:Consume lesse than 200 \text ounces of material
Based on the following GP formulation of the problem, and the associated optimal solution, what formulas should go in cells D6:F6, B9:F9, and B16 of the following Excel spreadsheet? NOTE: Formulas are not required in all of these cells.
$\begin{array}{|c|l|c|c|c|c|c|} \hline & {\text { A }} & \text { B } & \text { C } & \text { D } & \text { E } & \text { F } \\\hline 1 & \text { Problem Data } & \mathrm{A} & \mathrm{B} & & & \\\hline 2 & \text { Labor } & 3 & 2 & & & \\\hline 3 & \text { Material } & 1 & 2 & & & \\\hline 4 & \text { Profit } & 7 & 6 & & & \\\hline 5 & \text { Goal Constraints } & \mathrm{A} & \mathrm{B} & \text { Labor } & \text { Material } & \text { Profit } \\\hline 6 & \text { Actual Amount } & 4 & 69 & 150 & 142 & 442 \\\hline 7 & + \text { Under } & 36 & 1 & 0 & 58 & 0 \\\hline 8 & - \text { Over } & 0 & 0 & 0 & 0 & 42 \\\hline 9 & =\text { Goal } & 40 & 70 & 150 & 200 & 400 \\\hline 10 & \text { Target Value } & 40 & 70 & 150 & 200 & 400 \\\hline 11 & & & & & & \\\hline 12 & \text { Weights } & & & & & \\\hline 13 & \text { Under } & 1 & 1 & 0 & 0 & 1 \\\hline 14 & \text { Over } & 1 & 1 & 1 & 1 & 0 \\\hline 15 & & & & & & \\\hline 16 & \text { Objective } & 37 & & & & \\\hline\end{array}$

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Definitions:

Warranty Expenses

Costs associated with the obligation to repair, replace, or remediate goods that have not met the selling criteria or customer expectations.

Pretax Financial Income

Income calculated before taxes are applied, representing a company's earnings based solely on its operations and other financial activities.

Income Taxes Payable

The amount of income taxes that a company has accrued but has not yet paid to the tax authority.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life.