Question

A company is considering producing 8 different products for the upcoming holiday season. The profit contribution per product is illustrated below:

Product           Profit ($)

1                      10       

2                      12

3                      7

4                      15

5                      8

6                      9

7                      13

8                      11

The marketing manager has imposed the following restrictions on the production mix:

• Since products 1, 2, and 3 are electronic gadgets, at least two of these products must be in the production mix.

• Since products 4 and 5 are kids-oriented, the production mix must include no more than one of these products.

• If product 7 is included in the mix, then product 8 must be included, and vice versa.

Which products should be included in the mix to maximize profit?

Please use the Excel Solver to solve the above exercise question

Answer 1

We will use Excel Solver to solve this problem.

Hence, all products except 5 should be included in the product mix for maximizing profit.

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