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Business, 18.03.2021 01:10 battlemarshmell

An up-and-coming drug company needs to decide production levels for the upcoming week. The company sells three types of drugs, Jomentum, Zapitol, and Pakoderm, each of which is produced in batches. The labor requirements, profit per batch, and weekly demand for each type of drug is given below, along with the company’s weekly capacity (labor hours). Drug Profit per batch Labor hours required/batch Weekly Demand
Manufacturing Quality Testing
Jomentum 29 30 13 52
Zapitol 21 25 8 130
Pakoderm 62 32 19 67
Weekly capacity (labor hours) 4000 3200

The output for an LP solution is provided below.

Adjustable Cells Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$B$12 Production Jomentum 52 0 29 1.00E+30 3.8
$C$12 Production Zapitol 12 0 21 3.17 21
$D$12 Production Pakoderm 67 0 62 1.00E+30 83.12

Constraints Final Shadow Constraint Allowable Allowable
Cell Name Value Price R. H. Side Increase Decrease
$G$24 Jomentum Demand 52 4 52 9.87 52
$G$25 Zapitol Demand 12 0 130 1.00E+30 118.16
$G$26 Pakoderm Demand 67 83 67 9.25 67
$B$25 Manufacturing Needed 4000 1 4000 2954 296
$B$26 Quality Testing Needed 2044 0 3200 1.00E+30 1156.28

The objective is to come up with the production volumes (number of batches) of the three products to maximize profit. We denote the production volumes of Jometum, Zapitol, and Pakoderm by XJ, XZ, and XP, respectively.

Which one represents the objective function? (Profit per batch is selling price minus the variable cost.)

a. 56XJ + 39XZ + 110XP
b. 29XJ + 21XZ + 62XP
c. 30XJ + 25XZ + 32XP
d. 27XJ + 18XZ + 48XP

What is the maximum profit under the optimal solution?

a. 5914
b. 6021
c. 112
d. 131

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Answers: 1

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