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:

Good Business Communication

The effective exchange of information and ideas within a business environment that aids in decision-making and problem-solving.

Casual

Informal or relaxed in style or manner, often referred to clothing or conversation.

Concise

Expressing or covering much in few words; being brief but comprehensive.

IBM's Tips

Advisories or strategies recommended by IBM, potentially for innovation, technology or business practices.