4. An electronics company is engaged in the production of two components C1 and C2, used in...

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4. An electronics company is engaged in the production of two components C1 and C2, used in radio sets.

Each unit of C1 costs the company Rs 5 in wages and Rs 5 in materials, while each unit of C2 costs the company Rs 25 in wages and Rs 15 in materials. The company sells both products on one-period credit terms, but the company's labour and material expenses must be paid in cash. The selling price of C1 is Rs 30 per unit and of C2 it is Rs 70. Because of the strong monopoly of the company for these components, it is assumed that the company can sell at the prevailing prices as many units as it produces. The company's production capacity is, however, limited by two considerations. First, at the beginning of period 1, the company has initial balance of Rs 4,000 ( cash plus bank credit plus collections from past credit sales). Second, the companY has available, in each period, 2,000 hours of machine time and 1,400 hours of assembly time. The production of each C1 requires 3 hours of machine time and 2 hours of assembly time, whereas the production of each C2 requires 2 hours of machine time and three hours of assembly time.

Formulate the above problem as a linear programming problem.

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