Question: The Nyanam manufacturing company has orders for three similar products Product Orders (Units) A 2000 B 500 C 1200 Three machines are available for the

  • The Nyanam manufacturing company has orders for three similar products
Product
Orders (Units)
A
2000
B
500
C
1200

Three machines are available for the manufacturing operations. All three machines can produce all the products at the same production rate. However due varying defect percentages of each product on each machine, the unit costs of the products vary depending on the machine used. Machine capacities for the next week, and the unit costs are as follows

Machine
Capacity (units)1500
1
1500
2
100
3


 
Machine 

Product

A
B
C
1
Sh.100
Sh.120
Sh.90
2
Sh.130
Sh.140
Sh.120
3
Sh.110
Sh.100
Sh.120

Required

  • Use the transportation model to develop the minimum cost production schedule for the products and machines [10marks]
  • Show the linear programming formulation [2marks]

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