Company produces three types of products

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A Company produces three types of products A, B, and C on three machines. Product A requires 2 hours on machine 1, 1 hour on machine 2, and 3 hours on machine 3, product B needs 2 hours on machine 1, 2 hours on machine 2, and 2 hours on machine 3, and product C needs 3 hours on machine 1, 3 hours on machine 2, and 2 hours on machine 3. The revenues per unit of products A and B are $40, $35, and $60, respectively. The total processing times available each day for machines 1, 2, and 3 are 10, 12, and 11 hours, respectively.

(a) Formulate an LP to maximize the revenue of the company.

Solve the LP using LINDO and answer the following questions:

(b) If the selling price of product 2 is increased by $5, how will this change affect the basis? What will be the new revenue?

(d) A suggestion is made to increase the availability of machines 1 and 3 at the additional cost of $10/hr. Is this advisable?

(e) If the availability of machine 2 is increased from the present 12 hours to 14 hours, how will this increase impact the optimum revenue?

(f) Suppose that the availability of machine 3 is decreased by 1 hour, how will this increase affect the optimum revenue?

Reference no: EM132249431

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