Question
A firm produces 5 different products from a single raw material. Raw material is available in abundance at Rs. 6 per kg. The labor rate
A firm produces 5 different products from a single raw material. Raw material is available in abundance at Rs. 6 per kg. The labor rate is Rs. 8 per hour for all products. The plant capacity is 21000 labor hours for the budget period. Production facilities can produce all the products. The factory overhead rate is Rs. 8 per hour, comprising Rs. 5.60 per hour as fixed overhead and Rs, 2.40 per hour as variable overhead. The selling commission is 10% of the product price. Formulate the linear programming models to maximize the company's profit, on the basis of following information product Market demand(units) Selling price per unit(Rs.) Labor hrs required per unit Raw material required per unit (in gms) A 4000 32 1.0 700 B 3600 30 0.80 500 C 4500 48 1.50 1500 D 6000 36 1.10 1300 E 5000 44 1.40 1500
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