A Company Produces Two Products (A and B) Using Three

question 24

Essay

A company produces two products (A and B) using three resources (I, II, and III). Each product A requires 1 unit of resource I and 3 units of resource II and has a profit of $1. Each product B requires 2 units of resource I, 3 units of resource II, and 4 units of resource III and has a profit of $3. Resource I is constrained to 40 units maximum per day; resource II, 90 units; and resource III, 60 units.
What is the slack (unused amount) for each resource for the optimum production combination?

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Definitions:

Strategic Organizational Behavior

focuses on the study and application of knowledge about how individuals and groups act within organizations, to improve organizational effectiveness through strategic planning.

Human Capital

The combined abilities, expertise, and non-physical assets that individuals possess, which can generate economic benefits for themselves, their employers, or their community.

Positive Organizational Behavior

The study and application of positively oriented human resource strengths and psychological capacities that can be measured, developed, and effectively managed for performance improvement in the workplace.

Strengths

Refers to the internal capabilities, resources, and positive attributes of an individual or organization that can be leveraged to achieve goals.