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Question -

A merchant plans to sell two types of personal computers – a desktop model and a portable model that will cost Rs 25000 and Rs 40000 respectively. He estimates that the total monthly demand of computers will not exceed 250 units. Determine the number of units of each type of computers which the merchant should stock to get maximum profit if he does not want to invest more than Rs 70 lakhs and if his profit on the desktop model is Rs 4500 and on portable model is Rs 5000.



Answer -

Let the merchant stock x desktop models and y portable modelsrespectively.

Hence,

x ≥ 0 and y ≥ 0

Given that the cost of desktop model is Rs 25000 and of aportable model is Rs 40000.

However, the merchant can invest a maximum of Rs 70 lakhs

Hence, 25000x + 40000y ≤ 7000000

5x + 8y ≤ 1400

The monthly demand of computers will not exceed 250 units.

Hence, x + y ≤ 250

The profit on a desktop model is 4500 and the profit on aportable model is Rs 5000

Total profit, Z = 4500x + 5000y

Therefore, the mathematical formulation of the given problem is

Maximum Z = 4500x + 5000y ………… (i)

Subject to the constraints,

5x + 8y ≤ 1400 ………… (ii)

x + y ≤ 250 ………….. (iii)

x, y ≥ 0 …………. (iv)

The feasible region determined by the system of constraints isgiven below

A (250, 0), B (200, 50) and C (0, 175) are the corner points.

The values of Z at these corner points are given below

Corner point

Z = 4500x + 5000y

A (250, 0)

1125000

B (200, 50)

1150000

Maximum

C (0, 175)

875000

The maximum value of Z is 1150000 at (200, 50)

Therefore, the merchant should stock 200 desktop models and 50portable models to get the maximum profit of Rs 1150000.

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