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Q.2 A consumer-goods manufacturing company producing three final products needs to decide on the capacity investment with to a new automated packaging/assembly line that
Q.2 A consumer-goods manufacturing company producing three final products needs to decide on the capacity investment with to a new automated packaging/assembly line that it is designing. There are three types of packaging machines available and each one of them can pack the three products, albeit in varying capacities per hour. The shop works for 8 hours a day. While certain minimum demand requirements are to be met, the exact amount of packaging capacity to be invested needs to be finalized. Any additional production could be sold in the market as there is adequate demand for the products. The relevant details for the problem are summarized in Table below. Formulate the problem and obtain an optimal investment plan. Packaging Capacity Per Hour Minimum Daily Demand to be Met Product A 45 60 30 Product B 70 52 27 Product C 26 28 41 Cost of the 1.65 2.12 1.6 machine(in Rs million) 1100 1700 900
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