Saturday, June 29, 2013

Profit maximization between two products (cakes) using linear programming

Mother?s Novelty saloonsMy find loves to make cakes and pastries whenever she is off from go. She makes in truth exquisite epicurean cakes that other people, friends and the likes, start to ordinate them from her whenever on that point is an occasion. For that reason, she bought a dual purpose oven that get out bake different kinds of pastries and at the same time be used to epoch bon vivant cakes much(prenominal) as harvest-tide cakes. My mother, among her net bleed, is famous for her orangish left(p) cake and fruit cake. Since then, she eternally prepared both(prenominal) for her friends. I approve at a time which amidst the twain is intimately profitable tending(p) her expressage time to prepare such orders. My mother makes her orders from Friday noon up to Saturday noon. Together with her house help, they work from Friday noon until midnight and start again 7 in the pervade the following day up to noon time. Ingredients, costing, and procedure for do orangeness left(p) stripe and growth cake washbowl be seen in make up A and B. The time requirements for each of the two cakes, their suggested selling prices, their variable star costs, and their contribution margins appear in the table below. Orange Rum pattyFruit CakeSuggested Retail PriceLess changeable Costs to Produce wiz unit of measurement of Cake region moulding per unit P 200117.88P82.12P 350201.19P148.81Labor TimeOven Time (baking and aging).5 instant per unit1 hour per unit.
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33 hour per unit4 hours per unitUsing running(a) programing formulation, I can now know which between the two cakes is more profitable given the constraints. Decision Variables:ORC= tot of Orange Rum Cake to be producedFC= number of Fruit Cake to be producedObjective Function:maximize Total Contribution Margin = P82.12 ORC + P148.81 FCSubject to:ORC, FC= 0(non negativity constraint).5 ORC + .33 FC= 240 P 1970.88Ranging:VariableValueReduced CostOriginal ValLower BoundUpper BoundORC24082.1237.2InfinityFC0179.67148.81Infinity328.48ConstraintDual ValueSlack/SurplusOriginal ValLower BoundUpper BoundLabor Hours051712 InfinityOven... If you urgency to get a bountiful essay, order it on our website: Ordercustompaper.com

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