1. SE 303 Lab Paper production company

2. Paper Products Three basic products: pads of paper, 5-packs of paper, and 20-packs of paper. The pad of paper consists of single pad of 25 sheets of lined paper. The 5-pack consists of 5 pads of paper, together with a small notebook. The 20-pack of paper consists of 20 pads of paper, together with a large notebook.

3. Production Constraints The small and large notebooks are not sold separately. Production of each pad of paper requires 1 minute of paper-machine time, 1 minute of supervisory time, and $0.10 in direct costs. Production of each small notebook takes 2 minutes of paper-machine time, 45 seconds of supervisory time, and $0.20 in direct cost. Production of each large notebook takes 3 minutes of paper machine time, 30 seconds of supervisory time and $0.30 in direct costs.

4. Packaging and Availability Constraints To package the 5-pack takes 1 minute of packager’s time and 1 minute of supervisory time. To package 20-pack takes 3 minutes of packager’s time and 2 minutes of supervisory time. The amount of available paper-machine time, supervisory time, and packager’s time are constants b 1, b 2, and b 3, respectively.

5. Costs Any of the three products can be sold to retailers in any quantity at the prices $0.30, $1.60, and $7.00, respectively.

6. Solution