If the total number of portable printers demanded per month does not exceed 2500 and the company has earmarked no more than $600,000/month for manufacturing costs, how many units of each model should National make each month to maximize its monthly profit?

Linear Programming

National Business Machines manufactures x model A portable printers and y model B portable printers. Each model A costs $100 to make, and each model B costs $150. The profits are $40 for each model A and $35 for each model B portable printer. If the total number of portable printers demanded per month does not exceed 2500 and the company has earmarked no more than $600,000/month for manufacturing costs, how many units of each model should National make each month to maximize its monthly profit?

Identify each variable and explain the criteria involved in setting up the model. This should be encapsulated in one or two succinct paragraphs.

Linear Programming

Your writeup should introduce your solution to the project by describing the problem.

Correctly identify what type of problem this is. For example, you should note if the problem is a maximization or minimization problem, as well as identify the resources that constrain the solution.

Identify each variable and explain the criteria involved in setting up the model. This should be encapsulated in one or two succinct paragraphs.

After the introductory paragraph, write out the LP model for the problem. Include the objective function and all constraints, including any non-negativity constraints. Then, you should present the optimal solution, based on your work in Excel. Explain what the results mean.

Finally, write a paragraph addressing the part of the problem pertaining to sensitivity analysis and shadow price.