Question:

PROBLEM DESCRIPTION:

Howie Jones owns and operates Blue Ridge Hot Tubs, a company that sells two models of hot tubs: the Aqua-Spa and the Hydro-Lux. Howie purchases prefabricated fiberglass hot tub shells and installs a common water pump and the appropriate amount of tubing into each hot tub. Every Aqua-Spa requires 9 hours of labor and 12 feet of tubing; every Hydro-Lux requires 6 hours of labor and 16 feet of tubing. Demand for these products is such that each Aqua-Spa produced can be sold to generate a profit of $350, and each Hydro-Lux produced can be sold to generate a profit of $300. The company expects to have 200 pumps, 1,566 hours of labor, and 2,880 feet of tubing available during the next production cycle. Determine the optimal number of Aqua-Spas and Hydro-Luxes to produce to maximize profits.

1. What are the objective function, decision variables, and constraints for this optimization problem? Provide your response within an inserted text box.
2. Develop an Excel spreadsheet and use Excel Solver to find an optimal solution for this problem. Provide a screenshot (or Snipping Tool capture) of the Solver Dialog Box.
3. Describe the optimal solution in words. Provide your response within an inserted text box.

Price: $2.99

Solution: The downloadable solution consists of 2 pages
Deliverable: Word Document