Suppose a shoe factory produces both low-grade and high-grade shoes. The factory produces at least twice as many low-grade as high-grade shoes. The maximum possible production is 500 pairs of shoes. A dealer calls for delivery of at least 100 high-grade pairs of shoes per day. Suppose the operation makes a profit of Birr 2.00 per a pair of shoes on high-grade shoes and Birr 1.00 per pairs of shoes on low-grade shoes. How many pairs of shoes of each type should be produced for maximum profit?

The factory should produce 166 pairs of high-grade shoes and 364 pairs of low-grade shoes for maximum profit

Step-by-step explanation:

The given parameters for the shoe production are;

The number of low grade shoes the factory produces ≥ 2 × The number of high-grade shoes produced by the factory

The maximum number of shoes the factory can produce = 500 pairs of shoes

The number of high-grade shoes the dealer calls for daily ≥ 100 pairs

The profit made per pair of high-grade shoed = Birr 2.00

The profit made per of low-grade shoes = Birr 1.00

Let 'H', represent the number of high grade shoes the factory produces and let 'L' represent he number of low-grade shoes the factory produces, we have;

L ≥ 2·H...(1)

L + H ≤ 500...(2)

H ≥ 100...(3)

Total profit, P = 2·H + L

From inequalities (1) and (2), we have;

3·H ≤ 500

H ≤ 500/3 ≈ 166

The maximum number of high-grade shoes that can be produced, H ≤ 166

Therefore, for maximum profit, the factory should produce the maximum number of high-grade shoe pairs, H = 166 pairs

The number of pairs of low grade shoes the factory should produce, L = 500 - 166 = 334 pairs

The maximum profit, P = 2 × 166 + 1 × 364 = 696

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Graph number three

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