small-that yield a net unit profit of $420, $360, and $300, re-spectively. Plants 1, 2, and 3 have the excess capacity to produce750, 900, and 450 units per day of this product, respectively, re-gardless of the size or combination of sizes involved.The amount of available in-process storage space also imposesa limitation on the production rates of the new product. Plants 1,2, and 3 have 13,000, 12,000, and 5,000 square feet, respectively,of in-process storage space available for a day's production of thisproduct. Each unit of the large, medium, and small sizes producedper day requires 20, 15, and 12 square feet, respectively.Sales forecasts indicate that if available, 900, 1,200, and 750units of the large, medium, and small sizes, respectively, would besold per day.At each plant, some employees will need to be laid off unlessmost of the plant's excess production capacity can be used to pro-duce the new product. To avoid layoffs if possible, managementhas decided that the plants should use the same percentage of theirexcess capacity to produce the new product.Management wishes to know how much of each of the sizesshould be produced by each of the plants to maximize profit.(a) Formulate a linear programming model for this problem.c (b) Solve this model by the simplex method. 3.4-15. The Weigelt Corporation has three branch plants with ex-cess production capacity. Fortunately, the corporation has a newproduct ready to begin production, and all three plants have thiscapability, so some of the excess capacity can be used in this way.This product can be made in three sizes-large, medium, and

Profit expanding organizations utilize cost control and wide profit edges to build their…

Answered: 3.4-15. The Weigelt Corporation has…

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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