ABC company manufactures three grades of paint Venus, Diana and Aurora. The plant operates on a...
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ABC company manufactures three grades of paint Venus, Diana and Aurora. The plant operates on a three-shift basis and the following data is available from the production records Grade Venus Diana Requirment of resource Special additive (kg/litre) Milling (kilolitres per machine shift) Packing (kiloliters per shift) 0.30 2.00 12.00 Maximum possible sales per month (kilolitres) Contribution (Rs/kilolitre) Venus 100 0.15 4,000 3.00 12.00 Diana 400 Aurora 3,500 0.75 5.00 There are no limitations on other resources. The particulars of sales forecasts and estimated contribution to overheads and profits are given below. 12.00 Availability (capacity/month) 600 tonnes 100 machine shifts 80 shifts Aurora 600 2,000 Due to commitments already made, a minimum of 200 kiloliters per month of Aurora has to be necessarily supplied the next year. Just as the company was able to finalise the monthly production programme for the next 12 months, an offer was received from a nearby competitor for hiring 40 machine shifts per month of milling capacity for grinding Dianna paint, that could be spared for at least a year. However, due to additional handling at the competitor's facility, the contribution from Dianna will get reduced by Re 1 per litrs, Formulate this problem as an LP model for determining the monthly production programms to maximise contribution. ABC company manufactures three grades of paint Venus, Diana and Aurora. The plant operates on a three-shift basis and the following data is available from the production records Grade Venus Diana Requirment of resource Special additive (kg/litre) Milling (kilolitres per machine shift) Packing (kiloliters per shift) 0.30 2.00 12.00 Maximum possible sales per month (kilolitres) Contribution (Rs/kilolitre) Venus 100 0.15 4,000 3.00 12.00 Diana 400 Aurora 3,500 0.75 5.00 There are no limitations on other resources. The particulars of sales forecasts and estimated contribution to overheads and profits are given below. 12.00 Availability (capacity/month) 600 tonnes 100 machine shifts 80 shifts Aurora 600 2,000 Due to commitments already made, a minimum of 200 kiloliters per month of Aurora has to be necessarily supplied the next year. Just as the company was able to finalise the monthly production programme for the next 12 months, an offer was received from a nearby competitor for hiring 40 machine shifts per month of milling capacity for grinding Dianna paint, that could be spared for at least a year. However, due to additional handling at the competitor's facility, the contribution from Dianna will get reduced by Re 1 per litrs, Formulate this problem as an LP model for determining the monthly production programms to maximise contribution.
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