Question
Al Nakheel factory produces 3 different types of products. Product1: halva, product2: lokum, and product3: tahini. The annual demand for tahini is between 2000 and
Al Nakheel factory produces 3 different types of products. Product1: halva, product2: lokum, and product3: tahini. The annual demand for tahini is between 2000 and 2250 tons, for halva is between 600 and 750 tons and for lokum is between 250 and 300 tons. Product 1 and 2 require sesame as a raw material (M1) whereas for lokum the main raw material is jelly(M2). The raw material for products 1 and 2 arrive monthly per 400 tons, and it costs the company $1700 per ton of sesame. The raw material for product 3 also arrives monthly per 10 tons and it costs $250 per ton. The daily usage of raw material 1 is at least 1 ton per day and for raw material 2 is at most 700 kg. The minimum quantity that should be produced of both products 1 and 2 is 1.3 tons. Due to the company policy, there should always be an overproduction of the 3 products for new coming customers or orders or due to the delay in the raw materials from the supplier. The 3 products are stored in the same warehouse and each ton of product 1 product 2, and product 3 cost the company $43 as a holding cost.
Processing time for the different products per ton
Product1(halva) | Product2(tahini) | Product3(lokum) | Available hours for each machine (capacity) |
Machine1 | 150 min | 2126 | |
Machine2 | 60 min | 2250 | |
Machine3 | 600 min | 2250 | |
Selling price/ton ($) | $4,000 | $5,185.2 | $3,333.3 |
Optimization is to maximize the profit of the company by using linear programming.
Step by Step Solution
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