Company X has three flagship products: Absolute Sling Chairs, Awesome Tables, and Unbeatable Hammocks. The unit profit for these products is $45, $90, and $95, respectively. Each type of product requires manufacturing, transportation to warehouse, and marketing. The owners are very ambitious and can work 40 hours each week and so have 200 hours available each month. However, they are unable to spend more than 60 hours on any one activity (manufacturing, transportation, and marketing) in a month. The products are in such high demand that they are easily sold each month. It takes 30 minutes to manufacture one Absolute Sling Chairs. Transportation to warehouses takes 45 minutes and marketing takes 1 hour. Awesome tables take 2 hours for both the manufacturing and transportation phases, and marketing takes 1 hour. For Unbeatable Hammocks, manufacturing takes 0.4 hours; transportation takes 3 hours; and marketing also takes 1 hour. How many of each product should OPRE 605.7BE Inc. produce each month to maximize profit? a) Develop and implement a linear optimization model and clearly explain the sensitivity report.
Company X has three flagship products: Absolute Sling Chairs, Awesome Tables, and Unbeatable Hammocks. The unit profit for these products is $45, $90, and $95, respectively. Each type of product requires manufacturing, transportation to warehouse, and marketing. The owners are very ambitious and can work 40 hours each week and so have 200 hours available each month. However, they are unable to spend more than 60 hours on any one activity (manufacturing, transportation, and marketing) in a month. The products are in such high demand that they are easily sold each month. It takes 30 minutes to manufacture one Absolute Sling Chairs. Transportation to warehouses takes 45 minutes and marketing takes 1 hour. Awesome tables take 2 hours for both the manufacturing and transportation phases, and marketing takes 1 hour. For Unbeatable Hammocks, manufacturing takes 0.4 hours; transportation takes 3 hours; and marketing also takes 1 hour. How many of each product should OPRE 605.7BE Inc. produce each month to maximize profit? a) Develop and implement a linear optimization model and clearly explain the sensitivity report.
