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PRODUCTS

1 2 3 4 5
Indomethicin MetaforminAmitriptyline Doxepin Codeine
Pounds made (lbs) 0 0 0 0 0
Labor (hrs) 6 5 4 3 2.5
Raw Material (lbs) 3.2 2.6 1.5 0.8 0.7
Sale price/lb $ 12.50 $ 11.00 $ 9.00 $ 7.00 $ 6.00
Unit cost/lb $ 6.50 $ 5.70 $ 3.60 $ 2.80 $ 2.20
Demand (lbs) 960 928 1041 977 1084
Unit profit/lb $ 6.00 $ 5.30 $ 5.40 $ 4.20 $ 3.80

Profit $ -
Available
Labor Used 0 <= 4500 hrs
Raw Material Used 0 <= 1600 lbs

Companies often need to determine the quantity of each product to produce on a monthly basis. In it
simplest form, the product mix problem involves how to determine the amount of each product that s
be produced during a month to maximize profits. Product mix must usually adhere to the following
constraints:
Product mix cant use more resources than are available.
Because demand for each product is limited, you dont want to produce more of it during a mon
demand dictates because the excess production is wasted (for example, a perish- able drug).

You now can identify the three components of the product mix Solver model:
Target cell: The goal is to maximize profit (computed in cell D13).
Changing cells: The number of pounds produced of each product is listed in the D4:I4 cell
range.
Constraints: You have the following constraints:
Do not use more labor or raw material than is available. That is, the values in cells D15:D16
(the resources used) must be less than or equal to the values in cells F15:F16 (the available
resources).
Do not produce more of a drug than is in demand. That is, the values in the D4:I4 cells
(pounds produced of each drug) must be less than or equal to the demand for each drug
(listed in cells D9:I9).
You cant produce a negative amount of any drug.
6
Morphine
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1.5
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$ 3.00
$ 1.20
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$ 1.80

uce on a monthly basis. In its


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er model:
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uct is listed in the D4:I4 cell

he values in cells D15:D16


s F15:F16 (the available

ues in the D4:I4 cells


emand for each drug