A Company Needs to Purchase Several New Machines to Meet

question 22

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.
What values would you enter in the Risk Solver Platform RSP)task pane for the following cells for this Excel spreadsheet implementation of the formulation for this problem?
Objective Cell: Variables Cells: Constraints Cells:

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Definitions:

Market Penetration

A measure of the amount of sales or adoption of a product or service compared to the total theoretical market for that product or service.

Current Products

Items or services that a company currently offers in the market.

Marketing Strategy

A comprehensive plan formulated by a business to achieve specific marketing objectives and increase its market presence.

Market Penetration Strategy

A growth strategy where a business focuses on selling existing products within existing markets to gain a higher market share.