The Elastic Firm has two products coming on the market, Zigs and Zags. To make a Zig, the firm needs 10 units of product A and 15 units of product B. To make a Zag, they need 20 units of product A and 15 units of product B. There are only 2,000 units of product A and 3,000 units of product B available to the firm. The profit on a Zig is R4 and on a Zag it is R6. Management objectives in order of their priority are: (1) Produce at least 40 Zags. (2) Achieve a target profit of at least R750. (3) Use all of the product A available. (4) Use all of the product B available. (5) Avoid the requirement for more product A. Formulate this as a goal programming problem.

The Elastic Firm has two products coming on the market, Zigs and Zags. To make a Zig, the firm needs 10 units of product A and 15 units of product B. To make a Zag, they need 20 units of product A and 15 units of product B. There are only 2,000 units of product A and 3,000 units of product B available to the firm. The profit on a Zig is R4 and on a Zag it is R6. Management objectives in order of their priority are: (1) Produce at least 40 Zags. (2) Achieve a target profit of at least R750. (3) Use all of the product A available. (4) Use all of the product B available. (5) Avoid the requirement for more product A. Formulate this as a goal programming problem.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 33P: Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand...

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