You are on page 1of 6

Objective

To maximize profit
Profit

Profit Alpha

sale of Product

Maximize sale of
Alpha

Assumtion is produced means sold


Maximize
Production of
Alpha

Production

Explain in Mathematical form


Profit

=
=
=

A's Profit
Pa*sa
Pa*Xa

+
+
+

Testing

1*Xa

+
<= 120

Assembling

desktop
laptop
Workstation

Xa
Xb
Xc
Aline
Cline
Labour hours

10*Xa

120 Pa
0 Pb
40 Pc
120
40
2000

350
470
610

Testing

Labour hours

Shadow price

With increase in 1 unit of labour hour how mu


Here it is 30.5 by changing labour hour to 200

If sharing is allowed

I can give you A-line testing but you'll have to purchase 1

Upto 45 we are gettin


Part B
Testing

1*Xa

+
<= 120

Assembling

desktop
laptop
Workstation
desktop in Cline

10*(Xa+Xa')

Xa
Xb
Xc
Xa'
Aline
Cline
Labour hou

120 Pa
0 Pb
36 Pc
8.0
120
48
2000

Part C
Testing

1*Xa

+
<= 120

Assembling

desktop
laptop
Workstation

10*(Xa+Xa')

Xa
Xb
Xc
Aline
Cline
Labour hou

121 Pa
0 Pb
39.5 Pc
121
39.5
2000

Profit beta

Profit gamma

Maximize sale of
beta

Maximize sale of
Gamma

Maximize
Production of
gamma

eans sold
Maximize
Production of
beta

B's profit
Pb*Sb
Pb*Xb

+
+
+

C's Profit
Pc*Sc
pc*Xc

1*Xb

1*Xc

Pa
Pb
Pc
Sa
Xa

Profitability of A

No. of A Sold
No. of A produced

<=48
15*Xb

20*Xc

<=2000

Profit

A
C

abour hours

66400
70030.5

available used
120
48
2000

3630.5

Left over
120
40

0
8

Scarce
surplus

2000

Scarce

unit of labour hour how much my profit is increasing or decreasing


changing labour hour to 2001 from 2000

ut you'll have to purchase 100 units

1*Xb

1*Xc+1.5*Xa'
<=48

15*Xb

20*Xc

<=2000

350
470
610

1*Xb

Profit

66760

1*Xc+1.5*Xa'
<=48

15*Xb

20*Xc

<=2000
350
470
610

Profit

66445

With 1 unit increase in A line profit changes by 45

350
470
610

profitability for scarce resorce should be prioratized