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their plant. Production of each product requires labor and raw material.
Row 4 in Excel Workbook Productmix.xls gives the hours of labor needed to produce a
pound of each product,
Row 5 gives the pounds of raw material needed to produce a pound of each product.
For example, producing a pound of product 1 requires 6 hours of labor and 3.2
pounds of raw material.
For each drug, the price per pound is given in row 6, the unit cost per pound is given in
row 7, and the profit contribution per pound is given in row 9.
For example, product 2 sells for $11.00 per pound, incurs a unit cost of $5.70 per
pound, and contributes $5.30 profit per pound.
This months demand for each drug is given in row 8. For example, demand for product
3 is 1041 pounds.
This month, 4500 hours of labor and 1600 pounds of raw material are available.
How can this company maximize its monthly profit?
Our labor usage is given by
(Labor used per pound of drug 1)*(Drug 1 pounds produced) + (Labor used per pound of drug 2)*(Drug 2 pounds
produced) +
(Labor used per pound of drug 6)*(Drug 6 pounds produced)
We could compute labor usage in a tedious fashion as D2*D4 + E2*E4 + F2*F4 + G2*G4
+ H2*H4 + I2*I4.
Similarly, raw material usage could be computed as D2*D5 + E2*E5 + F2*F5 + G2*G5
+ H2*H5 + I2*I5.
OR Make use of Excel function =SUMPRODUCT(Array_1,Array_2)
In a similar way, our profit is given by
(Drug 1 profit per pound)*(Drug 1 pounds produced) + (Drug 2 profit per pound)* (Drug 2 pounds produced) +
(Drug 6 profit per pound)*(Drug 6 pounds produced).
Do not produce more of a drug than is in demand. That is, the values in the cells D2:I2
(pounds produced of each drug) must be less than or equal to the demand for each drug
(listed in cells D8:I8).
We cant produce a negative amount of any drug.
Assignment 4
Q. 7
A computer manufacturing plant produces mice, keyboards, and video game joysticks.
The per-unit profit, per-unit labor usage, monthly demand, and per-unit machine-time
usage are given in the following table:
Profit/unit
Labor usage/unit
Machine time/unit
Monthly demand
Mice
$8
.2 hour
.04 hour
15,000
Keyboards
$11
.3 hour
.055 hour
25,000
Joysticks
$9
.24 hour
.04 hour
11,000
Each month, a total of 13,000 labor hours and 3000 hours of machine time are
available. How can the manufacturer maximize its monthly profit contribution from the
plant?
Q. 8
Jason the jeweler makes diamond bracelets, necklaces, and earrings. He wants to work
at most 160 hours per month. He has 800 ounces of diamonds. The profit, labor time,
and ounces of diamonds required to produce each product are given below. If demand
for each product is unlimited, how can Jason maximize his profit?
Product
Unit Profit
Bracelet
Necklace
Earrings
$300
$200
$100
Ounces of
Diamonds Per Unit
1.2
.75
.5
Boston
983
1815
1539
Chicago
0
1205
1390
Dallas
1205
0
1332
LA
2112
801
2757
Miami
1390
1332
0