A company makes products A and B from 2 resources, labor and material. The company wants to determine the selling price which will maximize profits. A unit of A costs 30 to make and demand is estimated to be 50 - .09 * Price of A. A unit of B costs 20 to make and demand is estimated to be 30 - .14 * Price of B. The utilization of labor and materials and the available quantity of resources is shown in the table. A reasonable price for the products is between 90 and 140.

Let X₁ = demand for As and X₂ = demand for Bs.
Let P₁ = price for As and P₂ = price for Bs.
Formulate the NLP for this company

Question

A company makes products A and B from 2 resources, labor and material. The company wants to determine the selling price which will maximize profits. A unit of A costs 30 to make and demand is estimated to be 50 - .09 * Price of A. A unit of B costs 20 to make and demand is estimated to be 30 - .14 * Price of B. The utilization of labor and materials and the available quantity of resources is shown in the table. A reasonable price for the products is between 90 and 140.

Let X₁ = demand for As and X₂ = demand for Bs.
Let P₁ = price for As and P₂ = price for Bs.
Formulate the NLP for this company

Quizplus · Accepted Answer

The Answer of A company makes products A and B from 2 resources, labor and material. The company wants to determine the selling price which will maximize profits. A unit of A costs 30 to make and demand is estimated to be 50 - .09 * Price of A. A unit of B costs 20 to make and demand is estimated to be 30 - .14 * Price of B. The utilization of labor and materials and the available quantity of resources is shown in the table. A reasonable price for the products is between 90 and 140. Let X₁ = demand for As and X₂ = demand for Bs. Let P₁ = price for As and P₂ = price for Bs. Formulate the NLP for this company

A Company Makes Products a and B from 2 Resources