A manufacturing firm needs 5 component parts. Due to inadequate resources, the firm is unable to manufacture all its requirements. So the management is interested in determining as to how many, if any, units of each component should be purchased from outside and how many should be produced internally. The relevant data are given here

M: Per unit milling time in hours A: Per unit assembly time in hours T: Per unit testing time in hours TR: Total requirement in units PP: Price per unit quoted in the market PC: Per unit direct costs (including materials, labour, etc.)
Resources available are as follows:

Formulate this as an LPP, taking the objective function as maximisation of saving by producing the components internally.

Transcribed Image Text:

Component M A T 55 4 1 1.5 3 3 C3 1 1 0 CA 3 1 0.5 C5 2 0 0.5 K2G 755 2 TR PP 20 48 50 45 70 42 222 PC 30 80 52 24 18 31 40 28 16