Problem 2:
A company produces three products A, B and C by using two raw materials X and Y 4000 units of X
and 6000 units of Z are available for production. The requirement of raw materials by each product is
given below:
The given data is
Requirement per unit of product
Raw material
A
B
С
Х
2
5
Y
2
7
The labor time for each unit of product is twice that of product B and three times that of product C.
The entire labor force of the company can produce the equivalent of 2500 units of product A. A
market survey indicates the minimum demand of the three products are 500, 500 and 375 respectively
for 4, B and C. Assume that the profit per units of product A, B and Care $ 60 $40/- and $100
respectively. Formulate the LP.P. for maximizing the profit.
a) Formulate the above problem into a linear programming problem
b) Convert the problem into the standard form
c) Solve the problem using the Simplex method
) Which variables are in the final optimal tableau and indicato (if any) stack resources
e) Give the interpretations to the stock resource