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Company headquarters holds 1 0 0 units of a raw material; it proposes to divide this into three lots of x , y and z
Company headquarters holds units of a raw material; it proposes to divide this into three lots of and units of raw material to be sent to three area factories in the North, the Midlands and the South of the country and there they are turned into a finished product. Although the product sells at the same price in all three regions, the factories are not equally productive and in fact their respective outputs are:
North:
Midlands:
South:
North:
Midlands:
South:
How should the headquarters allocate to maximise the revenue? Hint: Use the Lagrange multiplier method.
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