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A Manager Must Decide on the Mix of Products to Produce

question 85

Essay

A manager must decide on the mix of products to produce for the coming week.Product A requires three minutes per unit for molding,two minutes per unit for painting,and one minute per unit for packing.Product B requires two minutes per unit for molding,four minutes per unit for painting,and three minutes per unit for packing.There will be 600 minutes available for molding,600 minutes for painting,and 420 minutes for packing.Both products have profits of $1.50 per unit.
(i)What combination of A and B will maximize profit?
(ii)What is the maximum possible profit?
(iii)How much of each resource will be unused for your solution?


Definitions:

Volatility

A statistical measure of the dispersion of returns for a given security or market index, often used to gauge risk.

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A Service Relay Valve is a pneumatic device in heavy-duty vehicles' braking systems that responds to signals from the brake pedal to apply or release air pressure to the brakes, ensuring timely and proportional braking action.

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Pressurized air reservoirs used in the air brake system of a trailer to store compressed air necessary for brake operation.

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