Name: ___Dimal, Neil Laurrence A.

Exercise #4

A chandelier manufacturer makes two types of chandeliers: standard and premium

types. The cost of manufacturing each type of chandelier is P2,300 for a standard
model and P3,700 for a premium model. It costs P300 to ship each standard model
and P400 to ship each premium model. The manufacturer does not want its
manufacturing costs to exceed P851,000 and its shipping costs to be at most
P120,000. No more than 300 chandeliers can be manufactured per week. How
many chandeliers of each type should be made to maximize profit if the profit is
P5,000 for each standard type sold and P7,000 for each premium type sold?

GIVEN:
Types Manufacturing Shipping 3RD Profit
Standard(X) 2,300 300 x 5,000
Premium(Y) 3,700 400 y 7,000
Required <=851,000 <=120,000 <=300

1. Write the objective function: 5,000x +7,000y

2. What are the constraints?

x + y <= 300
2,300x + 3,700y <= 851,000
300x + 400y <=120,000

3. What is the non-negativity constraint? X, Y <= 0

Blue: 3rd
Red: Manufacturing
Yellow: Shipping

4. What are the extreme points and their corresponding costs?

Points Coordinates Objective function
A (0,0) 5,000(0) +7,000(0) = 0
B (0,230) 5,000(0) + 7,000 (230) = 1,610,000
C (160,130) 5,000(160) +7,000(130) = 1,710,000
D (300,0) 5,000(300) +7,000(0) = 1,500,000

5. How many units should be produced?

Standard =160
 Premium =130

6. Constraints Available Required Slack

Manufacturing <=851,000 2,300(160) + 3,700(130) = 849,000 2,000
Shipping <=120,000 300(160) + 400(130) =100,000 20,000
3rd <=300 160 + 130 = 290 10

In no more than 5 sentences, explain to your boss what you have just computed.

Thus, from the calculation, the organization to augment its benefit, the
organization should produce 160 standard sort and 130 premium kind of light fixtures.