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A division of the Alpha Furniture Company thinks of making a new set of two products A and B to be processed in three departments

A division of the Alpha Furniture Company thinks of making a new set of two products A and B to be processed in three departments 1, 2 and 3.

Each product will require a certain amount of processing time in each department (with certain availabilities)

according to the following table:

Product A

Product A

Availability

Dep 1

0.2

0.4

15

Dep 2

0.5

0.1

20

Dep 3

0.3

0.3

18

Max production

78

96

Each unit of products A, and "B" contribute $40and $45 to profit respectively. To produce product A, there is a fixed cost of $600 setting up the production line which is $480 for product B .

Formulate the problem (Introduce variables, objective function and constraints properly)

Include the model as a text input here. You can submit your excel document at the end of the exam.

4 marks for the model and 4 marks for the solution (excel).

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