The management of MACU Corporation is trying to determine the amount of each of two products to produce over the coming planning period. The following information concerns labor availability, labor utilization, and product profitability:
Department Product .
1 2 Labor-Hours Available
A 1.00 0.38 110
B 0.25 0.30 45
C 0.25 0.45 60
Profit contribution/unit $30.00 $15.00
What are the optimal production quantities for the company?
a. What type/s of model/s should be used to solve the problem and why would you use that model/s?
b. Develop a model of the MACU Corporation problem. Solve the model to determine the optimal product quantities of products 1 and 2.
