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Linear Programming

The company should produce 4,221 books and 1,473 calculators per month to maximize profit. This will result in maximum monthly sales of $110,934 and maximum monthly profit of $83,933 after accounting for the $27,000 monthly cost constraint.

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Kitty Last
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2K views

Linear Programming

The company should produce 4,221 books and 1,473 calculators per month to maximize profit. This will result in maximum monthly sales of $110,934 and maximum monthly profit of $83,933 after accounting for the $27,000 monthly cost constraint.

Uploaded by

Kitty Last
Copyright
© © All Rights Reserved
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Linear Programming Sample Problem:

each book and calculator are $ 5 and $ 4 respectively. The monthly (30 day ) cost must not exceed
$ 27,000 per month. If the manufacturing equipment used by the company takes 5 minute to
produce a book and 15 minutes to produce a calculator , how many books and calculators should the
company make to maximize profit or sales? Determine the maximum profit or sales the company
earns in a 30 day period.

T C S = 90T + 180C
Sales $90) $180)
Cost $15) $45) where:
Time 2 5 S = total sales
T = tables
C = rocking chairs

for: Constraints
1.) 15T + 45C ≤ $ 315
2.) 2T + 5C ≤ 40

Make a Graph:
C
from equation 1 of constraints: from equation 2 of constraints:
for T intercept let C = 0 for T intercept let C = 0
8
then: from equation 1: then: from equation 2:
15T + 45(0) ≤ 315 2T + 5(0) ≤ 315
T = 21 T = 20
for C intercept let T = 0 for C intercept let T = 0
7 15(0) + 45C ≤ 315 2(0) + 5C ≤ 40
C=7 C=8

T
20 21

Solve for the unidentified quarter points:


Multiply equation 2 of constraints with -7.5
then: then:
15T + 45C = 315 substitute C to equation 1:
add: -15T - 37.5C = -300 5B + 4(1473) = 27,000
(0) + 7.5C = 15 B = 4,221.6 (must be round up
C = 1,472.72 for B is number of books
C = 1,473 (must be round up for B = 4,221
C is number of calculators.)
Objective: Make a table:
S = 20B + 18C B C S (Sales)
5,400 0 108,000
0 2,880 51,840
4,221 1,473 110,934
substitutes:
1.) S = 20B + 18C 2.) S = 20B + 18C 3.) S = 20B + 18C
= 20(5,400) + 18(0) = 20(0) + 18(2,880) = 20(4,221) + 18(1,473)
= 20(5,400) + 18(0) = 18(2,880) = 84,420 + 26,514
S = $ 108,000 S = $ 51,840 S = $ 110,934

Therefore:
Number of Books and Calculators for maximum sales or profit:
Books = 4,221
Caculators = 1,473

Maximum Profit in 30 days:


P=S-C
= 110,934 - 27,000
= $ 83,933.00

Assignment:
2.) A self-employed carpenter earns $ 90 for the sale of a table and $ 180 for the sale of a rocking chair. It
takes 2 hours for him to make a table and 5 hours to manufacture a rocking chair. He is limited to
working 40 hours per week. The average manufacturing cost is $ 15 per table and $ 45 per rocking
chair. He wishes to keep his manufacturing costs at $ 315 per week. How many tables and rocking
chairs should he make to maximize his weekly sales? Determine the maximum sales and profit he can
make per week.

T C
Sales $90) $180)
Cost $15) $4)
Time 5min 15min

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