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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.
Process Ready
50
100
80
Process Mix
70
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.
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