A Companypackages and sells four typesof products: Package Profit/package Contents Product A 32c Material 1 Product B
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Question:
A Companypackages and sells four typesof products:
Package | Profit/package | Contents |
Product A | 32c | Material 1 |
Product B | 39c | Material 2 |
Product C | 23c | 15% Material 2, 85% Material 3 |
Product D | 44c | 20% Material 1, 10% Material 2 and remainder Material 3 |
The Companyis constrained by a limitedamount of inventory available every twelve months.
The Company has inventory stocks of 225 kg’s of Material 1200 kg’s of Material 2 and 415 kg’s of Material 3 per annum.
The formulation of this problem should satisfy four requirements for standard Linear Programming
- There are limitedresources and there is an explicit objective function
- The equations are linear
- The resources are homogenous (everything is in one unit of measure)
- The decision variables are divisible and nonnegative (we can make a fractional part of each case)
- Formulate this problemas a profit maximisation problem.
- Solve the problem using the Simplex Algorithm (Excel). Interpret the optimal solution and the results for sensitivity analysis.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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