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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 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 hours.
A
B
A
C
Product N
$unit
unitsweek
RM
$unit
Product M
$unit
unitsweek
RM
$unit
min
min
min
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 days per
week 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 $unit What is the optimal production
plan for this case?
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