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ShivaTex has acquired a textile company and is contemplating the future of one of its major plants, located in South Tangerang. Three alternative decisions are being considered: 1) expand the plant and produce lightweight, durable material for possible sales to the military, a market with little foreign competition; 2) maintain the status quo at the plant, continuing production of textile goods that are subject to heavy foreign competition; 3) sell the plant now. If one of the first two alternatives is chosen, the plant will still be sold at the and of a year. The amount of profit that could be earned by selling the plant in a year depends on foreign market condition, including the status of a trade embargo bill in congress. The following payoff table describe this decision situation:
Decision
|
State of Nature
| |
Good Foreign Competitive Condition
|
Poor Foreign Competitive Condition
| |
Expand
|
$ 800.000
|
$ 500.000
|
Maintain status quo
|
$ 1.300.000
|
-$150.000
|
Sell now
|
$320.000
|
$320.000
|
Atlas Inc. produces product A and product B. Each product must go through two processes. Each A produced requires two hours in process 1 and five hours in process 2. Each B produced requires six hours in process 1 and three hours in process 2. There are 80 hours of capacity available each week in each process. Each A produced generates $6.00 in profit for the company. Each B produced generates $9.00 in profit for the company.
TicToc produces product A and product B. These products have the following resource requirements.
Product
|
Cost/Unit ($)
|
Labor hours/Unit
|
A
|
12
|
4
|
B
|
8
|
3
|
The firm has a weekly
production budget of $3000 and a maximum of 1000 hours of labor per week. Each
A produced generates $35.00 in profit for the company. Each B produced generates $25.00 in profit
for the company.
While all linear programming problems have a single objective function, very few, if any, have constraints.
The optimal solution for a linear programming problem will always occur at _________
The objective function is a linear relationship that ________________some value.
What is the maximum number of decision variables that can be solved for graphically?
The Crumb and Custard Bakery makes coffee cakes and traditional pastries in large pans. The main ingredients are flour and sugar. There are 25 pounds of flour and 16 pounds of sugar available, and the demand for coffee cakes is 5. Five pounds of flour and 2 pounds of sugar are required to make a pan of coffee cakes, and 5 pounds of flour and 4 pounds of sugar are required to make a pan of traditional pastries. A pan of coffee cakes has a profit of $2, and a pan of traditional pastries has a profit of $5. Determine the number of pans of cakes and traditional pastries to produce each day so that profit will be maximized.
The area that contains the values that satisfies all the constraints in a linear programming problem is known as the _________________ space