The problem I am facing is the following.
"A Company has developed two new toys for
possible inclusion in its product line for the upcoming Christmas
season. Setting up the production facilities to begin production
would cost $50,000 for toy 1 and $80,000 for toy 2. Once these
costs are covered, the toys would generate a unit profit of $10 for
toy 1 and $15 for toy 2.
The company has two factories that are capable of producing
these toys. However, to avoid doubling the start-up costs, just one
factory would be used, where the choice would be based on maximizing
profit. For administrative reasons, the same factory would
be used for both new toys if both are produced.
Toy 1 can be produced at the rate of 50 per hour in factory
1 and 40 per hour in factory 2. Toy 2 can be produced at the rate
of 40 per hour in factory 1 and 25 per hour in factory 2. Factories
1 and 2, respectively, have 500 hours and 700 hours of production
time available before Christmas that could be used to produce
these toys.
It is not known whether these two toys would be continued
after Christmas. Therefore, the problem is to determine how many
units (if any) of each new toy should be produced before Christmas
to maximize the total profit.
(a) Formulate an MIP model for this problem.
(b) Use the computer to solve this model."
"A Company has developed two new toys for
possible inclusion in its product line for the upcoming Christmas
season. Setting up the production facilities to begin production
would cost $50,000 for toy 1 and $80,000 for toy 2. Once these
costs are covered, the toys would generate a unit profit of $10 for
toy 1 and $15 for toy 2.
The company has two factories that are capable of producing
these toys. However, to avoid doubling the start-up costs, just one
factory would be used, where the choice would be based on maximizing
profit. For administrative reasons, the same factory would
be used for both new toys if both are produced.
Toy 1 can be produced at the rate of 50 per hour in factory
1 and 40 per hour in factory 2. Toy 2 can be produced at the rate
of 40 per hour in factory 1 and 25 per hour in factory 2. Factories
1 and 2, respectively, have 500 hours and 700 hours of production
time available before Christmas that could be used to produce
these toys.
It is not known whether these two toys would be continued
after Christmas. Therefore, the problem is to determine how many
units (if any) of each new toy should be produced before Christmas
to maximize the total profit.
(a) Formulate an MIP model for this problem.
(b) Use the computer to solve this model."
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