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Using Solver to determine the Optimal product mix

We work for a drug company that produces six different products at


their plant. Production of each product requires labor and row material. Row4
shows the hours of labor needed to produce a pound of each product, and row
5 shows the pounds of row material needed to produce a pound of each
product. For example, producing a pound of Product 1 requires 6 hours of
labour and 3.2 pounds of row material. For each drug the price per pound is
given in row 6, the unit cost per pound is given in row 7, and the profit
contribution per pound is given in row 9. For example, Product 2 sells for
$11.00 per pound , incures in unit cost of $5.70 per pound , and contributes
$5.30 profit per pound . The months demand for each drug is given in row8.
For example , demand for product 3 is 1041 pounds. This month, 4500 hours
of labor and 1600 pound of row material are available. How can this company
maximize its monthly profit?
A

C
Poundsmade

Availabl
3 e
Product
4
4500 Labor
5
1600 RawMaterial

E
1
6
3,2

F
2
5
2,6

9
10
11

Unitprofitcont.

$
$
12,50 11,00
$
$
6,50
5,70
960
928
$
$
6,00
5,30

12

Profit

Unitprice

7
8

Variablecost
Demand

13
14
15

LaborUsed
RawMaterialUsed
Ch27.

?
?

<=
<=

G
3
4
1,5

$
$
$

H
4
3
0,8

I
5
2,5
0,7

6
1,5
0,3

$
$
$
9,00 7,00
6,00
3,00
$
$
$
3,60 2,80
2,20
1,20
1041
977 1084 1055
$
$
$
5,40 4,20
3,80
1,80

Availabl
e
4500
1600

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