Linear Programming model
I need to define the decision variables and formulate a linear programming model to maximize Priceler's profit during the next 3 months. Please see the details of this LP problem below, which comes from Wayne Winston's textbook "Operations Research: Applications and Algorithms" 4th edition.
Chapter 3, Review Problem 54:
Priceler manufactures sedans and wagons. The number of vehicles that can be sold each of the next three months are listed in the table shown below:
Month Sedans Wagons
1 1,100 600
2 1,500 700
3 1,200 500
Each sedan sells for $8,000, and each wagon sells for $9,000.
It costs $6,000 to produce a sedan and $7,500 to produce a wagon.
To hold a vehicle in inventory for one month costs $150 per sedan and $200 per wagon.
During each month, at most 1,500 total vehicles can be produced.
Production line restrictions dictate that during month 1 at least two-thirds of all cars produced must be sedans.
At the beginning of month 1, there are 200 sedans and 100 wagons available in inventory.
Formulate an LP model that can be used to maximize Priceler’s profit during the next three month
12 years ago
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- 8443073_solution.docx