# Valencia Products makes automobile

## Valencia Products makes automobile

Valencia Products makes automobile

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Valencia Products makes automobile radar detectors and assembles two models: Laser Stop and Speed Buster. The firm can sell all it produces. Both models use the same electronic components. Two of these can be obtained only from a single supplier. For the next month, the supply of these is limited to 4,000 of component A and 3,500 of component B. The number of each component required for each product and the profit per unit are given in the table.
Components
A B Profit/Unit
LaserStop 18 6 \$24
SpeedBuster 12 10 \$40
• a) Define the decision variables for Valencia’s problem assuming that Valencia wishes to maximize profit.
• b) Formulate the linear program (LP) for solving Valencia’s problem of choosing the most profitable product mix. That is, write out the full mathematical formulation, including objective function and all constraints.
• c) Draw the feasible region for the LP formulation of Valencia’s problem.
• d) Identify all corner points and the optimal solution for Valencia’s problem. What is the optimal solution value?
• e) Put the LP into Excel and solve it using Solver tool. Verify that the solution is the same as one you obtained by hand.

Valencia Products makes automobile