A firm is engaged in producing two products A and B, which yield a unit profit of

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A firm is engaged in producing two products A and B, which yield a unit profit of Rs 400 and Rs 300, respectively. Both of these require a certain raw material whose supply is limited to 300 kg per month.

The raw material requirement is one kg per unit of each product. Further, it is known that one unit of A requires 2 hours of processing while each unit of 8 needs one hour. The firm has a normal processing capacity of 400 hours per month. The marketing department has stated that according to the prevailing conditions, and likely to continue in the foreseeable future, the maximum number of units of A and Bwhich can be sold each month is 150 and 350, respectively. The manager of the firm has set the following goals in order of their importance-the priorities being preemptive.

Goal 1: Avoid under-utilisation of normal productive capacity.

Goal 2: Sell the maximum number of units of products A and 8. However, since the two products yield profit in the ratio 400: 300, the manager would give the weightage to the sale of the products in the same ratio.

Goal 3: Minimise overtime of processing capacity.

You are required to formulate this as goal programming problem and solve it graphically.

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