Vassar Company produces two ty

Vassar Company produces two types of gears: Model #12 and Model #15. Market conditions limit the number of each gear that can be sold. For Model #12, no more than 15,000 units can be sold, and for Model #15, no more than 40,000 units. Each gear must be notched by a special machine. Vassar owns eight machines that together provide 40,000 hours of machine time per year. Each unit of Model #12 requires two hours of machine time, and each unit of Model #15 requires one half hour of machine time. The unit contribution for Model #12 is $30 and for Model #15 is $15. Vassar wants to identify the product mix that will maximize total .

Required:

1. Formulate Vassar’s problem as a linear programming model.

2. Solve the linear programming model in Requirement 1.

3. Identify which constraints are binding and which are loose. Also, identify the constraints as internal or external.

Solution:

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