Question

Your employer, yPlum Corporation is manufacturing two types of products: Mirabelle smartphone, and Blackamber laptop. The company has a well-established position on the phone market, but has recently decided to conquer the PC market with its new product - Blackamber workstation. YPlum has very ambitious plans and is determined to become a significant player in the computer market, while maintaining its strong position in the smartphone area.Your task is to find a product mix that would maximize yPlum's profits in the next month. Since you always had interest in accounting and financial analysis, you have quickly identified the relevant information. On average, it costs the company $250 to manufacture the Mirabelle phone, and $700 to produce the Blackamber. The products are being sold for $650 and $1200 respectively. After exchanging emails with your supply chain group, you have established that the phone requires 50 days of labor, while the laptop - 70 days. The computers take longer to produce because the customers can build their own setups. Your total manufacturing capacity is 160,000 working days. Your annual materials budget is set at $12,000,000. Finally, the company's executives expect that yPlum will sell at least 1 million phones and 0.5 million computers next month.Find the optimal mix of product quantity that would maximize yPlum profits. Submit the Excel file with your solution.

Answer 1

Answer:

See explaination

Explanation:

No of Mobiles=x1

No of Work stations=x2

Constraints:

50x1+70x2<=1,60,000

250x1+700x2 <= 1,20,00,000

x1>=0 x2>=0

Objective function N(x1,x2)= 7800000000 x1+ 7200000000 x2

Excel formulae:

G17 =D9*E7+F9*G7

G18= D10*E7*F10*G7

G19=E7

G20=G7

G21= I17*E7+I18*G7 (This will be Maximum)

And E7 and G7 will be solution.

Prepare sheet as shown in diagram and set the formulae.

Go to tool and select solver. Solver dialog will open, select ‘Assume Linear model’ and ‘assume non-negative’. Click solve model and click keep solution.

See attachment.