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The Nyayo Tea Development Authority is on strategic drive to improve their profits. They have decided with their partners Tea factories to improve their
The Nyayo Tea Development Authority is on strategic drive to improve their profits. They have decided with their partners Tea factories to improve their profits through value addition to their tea. Given the following production problem with profit function and production constraints. Maximize = 80x1 + 60x2 Subject to x1 32 [Cutting Constraint] *2 16 [Mixing Constraint] x14x248 [Packaging Constraint] X1, X2 0 a) Formulate an extended problem with slacks. [3 Marks] b) Using simplex method determine the best feasible solution for the c) problem. [6 Marks] Suppose now the Authority wants to improve on the profit, determine at what choices of the x1, x2 will obtain profits of KSh. 1520 using pivot step method. [6 Marks]
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