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Maximizing profit, anybody wanna help?

  1. Sep 24, 2006 #1
    Maximizing profit, anybody wanna help??

    I haven't taken statistics in many years so I am a bit rusty. I am trying to maximize profit. Is there a specific formula to follow in order to do this. There are three separtate items. What i need to know is how many of each item should I produce in order to max my profit. I have a budgeted amt of in factory labor hrs, on site labor hrs and total cash for building materials. Also, each item yields a separate amt. of profit, requires a separate amt. of factory labor hrs., and a separate amt. of on site labor hrs. Thanks in advance if anyone who is kind enought to provide me with a formula or suggestions.
     
  2. jcsd
  3. Sep 25, 2006 #2

    CRGreathouse

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    It's a system of linear equations and inequalities. You should be able to figure it out with pencil and paper if it's small, otherwise the simplex method is easy to program.

    Here's a tip: the profit is maximized at one point where the constraints meet. You don't need to check the interior.

    If you have more questions, post details on the problem.
     
  4. Sep 25, 2006 #3
    Production sum for total materials is $8200000. Factory hrs. are a total of 218000hrs. Onsite hours are a total of 237000hrs. Per item numbers are as follows: (A. $6000 for materials, 240 factory hrs., 180 onsite hrs, and a profit yield of $3400) (B. $8000, 220hrs, 210hrs, profit yield of $4000) (C. $10000, 200hrs, 300hrs, profit yield of $5000)
     
  5. Sep 25, 2006 #4

    CRGreathouse

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    Now set this up as a system of equalities and inequalities:

    Profit = 3400a + 4000b + 5000c
    218000 >= 240a + 210b + 200c (hours)
    . . .
     
  6. Sep 25, 2006 #5
    I need help on what the constraints are. I'm going off of no book or guide to help me along in trying to figure out how to do it. This is all an attempt to help my cousin who is a soph in college right now. I just cannot remember how to do this and I have misplaced my book. trying to go off of memory is a bit harder than i thought. I originall thought it was a calculus problem so I made a commitment to help her out. Now I find out that it is a statistics problem and I am at a loss.
     
  7. Sep 25, 2006 #6
    what she really needs help with is finding the constraints of this problem
     
  8. Sep 25, 2006 #7
    nevermind disregard this entire thread. she just wasn't orienting the problem in the right way. She had a table set up and was thinking vertically when she should have been thinking vertically. Sorry. I must sound quite dim-witted
     
  9. Nov 28, 2006 #8
    Hello,

    Do you have a tested program for TI89 to solve Linear Programming problem using Simplex method Phase #1 and Phase #2? or I need a program TI89 which can pivot showing step-by-step or I can define the pivot element.

    I convert max to minimum problem, I can make tables but I'm very slow in manual pivot.
     
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