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A vegetable oil processor wishes to determine how much shortening, salad oil, and margarine to produce to optimize the use its current oil stock supply.

A vegetable oil processor wishes to determine how much shortening, salad oil, and
margarine to produce to optimize the use its current oil stock supply. At the present
time, he has 248000kg of soybean oil, 114000kg of cottonseed oil, and 2000kg of milk-
base substances. The milk-base substances are required only in the production of
margarine. There are certain processing losses associated with each product: 10% for
shortening, 5% for salad oil, and no loss for margarine. The producer's back orders
require him to produce at least 85000kg of shortening, 40000kg of salad oil, and 1100
kg of margarine. In addition, sales forecasts indicate a strong demand for all products in
the near future. The profit per kilogram and the base stock required per kilogram of each
product are given in Table.1. Formulate the problem to maximize profit over the next
production-scheduling period.
Table. 1 Data for the vegetable oil processing problem
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