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Buffro ( Pty ) Ltd manufactures two types of cooler bags, the Cool and the Ice. information about the bags is given in the following
Buffro Pty Ltd manufactures two types of cooler bags, the Cool and the Ice. information about the bags is given in the following table.
tableCool,IceSelling price per unit,RRVariable cost per unit,Material R; kg and kg respectivelyLabour R; hours and hours respectivelytableVariable overhead R; hours and hoursrespectivelytableContribution per unitMaximum demand, units, units
Limitations of resources are as follows:
Material
kg
Labour
labour hours
Variable overheads
machine hours
The maximum demand is units of the Cool and units of the Ice.
Required:
Prepare a linear programming solution for the limited resources of Buffro Pey
Ltd using:
The graphical method with simultaneous equations
The simplex method.
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