Question

A company wants to determine how many units of each of two products, A and B, they should produce. The profit on product A is $50 and the profit on product B is $45. Applying linear programming to this problem, which of the following is the objective function if the firm wants to make as much money as possible?HINT: Maximize Z where Z will be equal to $50 times the number of product A units produced PLUS $45 times the number of product B units produced. Since we want to make as much money as possible, we would like that mix of A and B that will let Z be as large as possible.

Answer 1

Here we have total sales equation as under:

Z = 50*A + 45*B

Z is the total sales of the two products A & B. Whereas $50 is the profit per unit on the product A and $45 on the product B.

This means our best wishes for the company includes that the company only sales product A and reach production limit, because the profit on unit A is more than the product B. So this is the objective of the company regarding the sales prioritization of products.