A company produces 3 items (A,B and C). A requires 2mins of Labour and 3mins of...

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A company produces 3 items (A,B and C). A requires 2mins of Labour and 3mins of machine time and incurs a production cost of $50 per unit. B requires 4mins labour, 2mins machine time with a production cost of $70. C requires 5mins labour, 4mins machine time and has a production cost of $100. The company has only 100hrs of labour and 80hrs of machine time with a production demand of at least 500 units of A, 300 units of B and 200 units of C. Also company cannot produce more than 800 units of A, 600 units of B and 400 units of C. - identify the decision variables, objective functions and constraints - write the mathematical representation of the cost minimisation problem - Use excel solver to determine the number of units of each product to produce to minimise the overall production cost - find the optimal values of A,B and C that minimises total production cost - interpret result. A company produces 3 items (A,B and C). A requires 2mins of Labour and 3mins of machine time and incurs a production cost of $50 per unit. B requires 4mins labour, 2mins machine time with a production cost of $70. C requires 5mins labour, 4mins machine time and has a production cost of $100. The company has only 100hrs of labour and 80hrs of machine time with a production demand of at least 500 units of A, 300 units of B and 200 units of C. Also company cannot produce more than 800 units of A, 600 units of B and 400 units of C. - identify the decision variables, objective functions and constraints - write the mathematical representation of the cost minimisation problem - Use excel solver to determine the number of units of each product to produce to minimise the overall production cost - find the optimal values of A,B and C that minimises total production cost - interpret result.

Answer rating: 100% (QA)

Decision Variables Lets define the decision variables as follows xA Number of units of Product A to ... View the full answer