Answered step by step
Verified Expert Solution
Question
1 Approved Answer
5 . 8 GRT ( Pty ) Ltd manufactures two products, and the raw materials go through two processes in the production process. The one
GRT Pty Ltd manufactures two products, and the raw materials go through two processes in the production process. The one product is called the Basic, and the other the Superior. The information available is given in the table below.
tableBasic,SuperiorMaximum sales potential,Selling price,RRMachine time:,,Process Process
Process and Process have maximum available hours of and respectively. The processes are used for the sole purpose of manufacturing the two products mentioned above.
The maximum available material is Each product requires of material. The material is purchased at R per kg Variable machine overheads are estimated at R per machine hour for Process and R per machine hour for Process
All units are sold in the year in which they are produced.
There is no limit to the number of units of each product that can be sold.
Required:
a Use a linear programming graph and simultaneous equations to determine the optimal production plan for the two products, the Basic and the Superior:
b Determine the shadow price for one additional kilogram of material.
Linear programming
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started