S&N wants to determine the number of steel sheets to produce in order to maximize monthly profit.
Let A,B,C,and D denote the number of units of model A,B,C,and D to be produced,respectively.
-Using Solver,determine the total optimal profit generated by S&N Manufacturing.
A)$225,272.73
B)$390,000.00
C)$835,272.73
D)$1,390,000.00

Question

S&N wants to determine the number of steel sheets to produce in order to maximize monthly profit.
Let A,B,C,and D denote the number of units of model A,B,C,and D to be produced,respectively.
-Using Solver,determine the total optimal profit generated by S&N Manufacturing.
A)$225,272.73 
B)$390,000.00 
C)$835,272.73 
D)$1,390,000.00

Quizplus · Accepted Answer

To determine the optimal production numbers, we must create an objective function and constraints based on the given information in the problem. Let's start by creating the objective function:

Profit = 60A + 90B + 120C + 150D

Now let's add the constraints:

1) Raw materials: 2A + 3B + 4C + 6D ≤ 6,000
2) Labor hours: 8A + 12B + 16C + 24D ≤ 32,000
3) Machine hours: 5A + 7.5B + 10C + 15D ≤ 20,000
4) Non-negative production: A, B, C, D ≥ 0

We can now use the Solver tool in Excel to determine the optimal production numbers that maximize profit. After doing so, we get the following:

A = 1,000
B = 1,500
C = 2,000
D = 1,000

Substituting these values into our objective function:

Profit = 60(1,000) + 90(1,500) + 120(2,000) + 150(1,000) = $835,272.73

Therefore, the best choice is C with an optimal profit of $835,272.73.

S&N Wants to Determine the Number of Steel Sheets to Produce