Determine the optimal production plan

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Question - ABC produces three goods: Good A, Good B and Good 0. The contribution per unit of the respective products is as follows:

 

Good A

Good B

Good C

Contribution per unit

840

640

1240

To produce these products, it requires two steps which is process ready and process mix. The processing time requirement for each respective product are listed below.

 

Good A

Good B

Good C

Process Ready

50

100

80

Process Mix

70

80

110

The monthly processing time of Process Mix and Process Ready is limited to 160,000 hours and 1000.000 hours respectively. The sales of Product A are limited to 1800 units per month due to regulatory restrictions. Company's objective is contribution maximisation.

Using the simplex method, determine the optimal production plan with clear workings and explanation.

Reference no: EM133150569

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