Question
Resolution Ltd manufactures three products: Product RR, Product SS and Product TT. The contribution per unit of the respective products is as follows: Product RR
Resolution Ltd manufactures three products: Product RR, Product SS and Product TT. The contribution per unit of the respective products is as follows: Product RR Product SS Product TT Contribution per unit 450 650 350 The manufacture of these products involves two processes: Process Reso and Process Lution. The processing time requirements of each product (in hours) are as follows: Product RR Product SS Product TT Process Reso 35 55 40 Process Lution 20 35 45 The monthly processing time of Process Reso and Process Lution is limited to 84,975 hours and 50,050 hours respectively. The sales of Product RR are limited to 800 units per month due to regulatory restrictions.
The objective of the company is to maximise contribution.
Required: Determine the optimal production plan using the simplex method. You should show and clearly explain all workings. Your answer should be rounded to 3 decimal places.
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