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Product network of a given factory is shown in Figure 1 . Note that weekly demand, unit selling price, raw material cost, and unit operation

Product network of a given factory is shown in Figure 1. Note that weekly demand, unit
selling price, raw material cost, and unit operation time on machines A, B, and C are all
given in the figure. Weekly capacity of machines is 40 hours.
A
B
A
C
Product N
$110/unit
100 units/week
RM2
$20/unit
Product M
$100/unit
90 units/week
RM1
$40/unit
15 min
5 min
10 min
10 min
a) Analyze this network and decide what weekly production plan (product mix) should be in
order to maximize profit. What is the constraint in this system?
b) The described system is modified in such way that machine B can work only 4 days per
week (32 hours) due to necessary repair. What is the optimal production plan (product
mix) in this case? What is the constraint?
c) The marketing department in the original system expanded the new market, which
allowed the selling price for product M to be $120/unit. What is the optimal production
plan for this case?

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