Question

Ace Rubber company manufacture three types of tires: Model P, the premium, Model S, the second line, and Model E, the economy. Model P sells for Birr 95 per tire and costs Birr 85 per tire to make, Model S sells for Birr 78 per tire and costs Birr 72 per tire to make, while Model E sells for Birr 75 per tire and costs Birr 63 per tire to make. To make one Model P tire, it requires one hour on machine A and one hour on machine B. To make one Model S tire, it takes one hour on machine A and two hours on machine B; to make one model E tire requires four hours on A and three hours on B. Production scheduling indicates that during the coming week machine machine A will be available for at most 42 hours and machine B for at most 40 hours. How many of each tire should the company make in the coming week in order to maximize its profit? What is the maximum profit?

Answer 1

maximize profit = (95 -85) p + (78-72) s + (75-63) e
= 10 p + 6 s + 12 e
subject to constraints:
hours A = 1 p +1 s + 4 e </= 42
hours B = 1 p + 2 s + 3 e </= 40

https://www.easycalculation.com/operations-research/simplex-method-calculator.php

Answer 2

By the way, make 40 premiums.