Problem 2: (Linear Optimization – Mac users should strongly…
Problem 2: (Linear Optimization – Mac users should strongly consider using LibreOffice, Apache Open Office, or Excel on a Windows machine) A company produces and sells up to three products, A, B, and C. Each product has an annual demand potential (or a maximum possible quantity supplied to the market), a variable unit profit contribution, and an annual fixed cost. The fixed cost can be avoided if the product is not produced at all. This information is summarized in the spreadsheet. Each product requires work on three machines. The standard productivities and capacities are also in the parameters section of the spreadsheet. The company is trying to figure out which products to produce and supply to the market. If they choose to supply a product to the market, they must also decide how many units to supply. They’re attempting to maximize their profits without violating any constraints. WARNING: THE SOLVER OPTIONS FOR THIS WORD PROBLEM SHOULD HAVE BINARY CONSTRAINTS. Answer the questions related to this problem (using the spreadsheet to help). In the case that the company is making optimal decisions, how many units of Product B do they produce and supply to the market?
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