Question

Production planning department of Graystar Prefabricated Homes Company has to decide which types of homes to produce for the next period. They have four prefabricated homes (A,B,C and D). Each home uses three different materials, lumber, particleboard and drywall. The table given below shows the expected profits for each house, the amount of materials used in house and the available quantities of these materials.

A B C D Available

Profit 20,000 17,000 21,000 24,000

Lumber 10 7 11 10 25

Particle Board 5 4 7 6 20

Drywall 2 1.5 3 2.5 6

Formulate the problem, to determine which house(s) should be produced to maximize the profit.

Can you please show me the formulas used in detail. Thanks!!

Answer 1