A company is developing its weekly production plan.The company produces two products,A and B,which are processed in two departments.Setting up each batch of A requires $60 of labor while setting up a batch of B costs $80.Each unit of A generates a profit of $17 while a unit of B earns a profit of $21.The company can sell all the units it produces.The data for the problem are summarized below.
Hours required by
$$\begin{array} { r c c c }
\text { Operation } & \text { A } & \text { B } & \text { Hours } \
\hline \text { Cutting } & 3 & 4 & 48 \
\text { Welding } & 2 & 1 & 36
\end{array}$$
What is the appropriate formula to use in cell B15 of the following Excel implementation of the ILP model for this problem?

A)=B5 ? MIN$E$11/B11,$E$11/C11)*B14
B)=B5 ? MIN$E$11/B11,$E$12/B12)
C)=B5 ? $E$12/B12*B14
D)=B5 ? MIN$E$11/B11,$E$12/B12)*B14

Question

A company is developing its weekly production plan.The company produces two products,A and B,which are processed in two departments.Setting up each batch of A requires $60 of labor while setting up a batch of B costs $80.Each unit of A generates a profit of $17 while a unit of B earns a profit of $21.The company can sell all the units it produces.The data for the problem are summarized below.
Hours required by
$$\begin{array} { r c c c } 
\text { Operation } & \text { A } & \text { B } & \text { Hours } \
\hline \text { Cutting } & 3 & 4 & 48 \
\text { Welding } & 2 & 1 & 36
\end{array}$$
What is the appropriate formula to use in cell B15 of the following Excel implementation of the ILP model for this problem?

A)=B5 ? MIN$E$11/B11,$E$11/C11)*B14 
B)=B5 ? MIN$E$11/B11,$E$12/B12) 
C)=B5 ? $E$12/B12*B14 
D)=B5 ? MIN$E$11/B11,$E$12/B12)*B14

Quizplus · Accepted Answer

Cell B15 calculates the total profit for the company, therefore it should use the profit formula, which is Profit = (Revenue - Cost). The revenue is the total units produced multiplied by their respective profit, and the cost is the sum of the labor and setup costs. Therefore, the appropriate formula is:
B5 - (MIN($E$11/B11, $E$12/B12) * B14) * (17*A13 + 21*B13) - (60*A12 + 80*B12) - ($E$11*A13 + $E$12*B13) = B15
Option D correctly represents this formula.

A Company Is Developing Its Weekly Production Plan What Is the Appropriate Formula to Use in Cell B15