Question
( Product mix problem with fixed / setup cost and capacity constraints ) Three raw materials are used to produce 3 products: a fuel additive,
Product mix problem with fixedsetup cost and capacity constraints
Three raw materials are used to produce products: a fuel additive, a solvent base, and a carpet cleaning fluid. The profit contributions are $ per ton for the fuel additive, $ per ton for the solvent base, and $ per ton for the carpet cleaning fluid. Each ton of fuel additive is a blend of tons of material and tons of material Each ton of solvent base requires tons of material tons of material and tons
of material Each ton of carpet cleaning fluid is a blend of tons of material tons of material and tons of material RMC has tons of material tons of material and tons of material
There is a fixed cost for production setup of the products, as well as a maximum production quantity for each of the three products.
Product Setup Cost Maximum Production
Fuel additive $ tons
Solvent base $ tons
Cleaning fluid $ tons
RMC is interested in determining the optimal production quantities for the upcoming planning period to maximize its profit.
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