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ABC Company manufactures both interior and exterior paints from 2 raw materials M1 and M2. The following table gives basic data of problem.
Exterior paint
Interior paint
Availability
N1
6
4
24
N2
1
2
Profit per ton
5
A market survey signifies that every day demand for interior paint cannot surpass that for exterior paint by more than 1 ton. Also maximum routine demand for interior paint is 2 tons. Develop LPP to find out the top product mix of interior and exterior paints that maximizes the daily total gain (profit).
Answer
Assume
x1 - number of units of exterior paint
x2 - number of units of interior paint
Maximize Z = 5x1 + 4x2
Subject to
6x1 + 4x2 ≤ 24
x1 + 2x2 ≤ 6
x2 - x1≤ 1
x2≤ 2
x1≥0, x2 ≥0
b) The highest routine demand for exterior paint is almost 2.5 tons
x1≤ 2.5
c) Routine demand for interior paint is as a minimum 2 tons
x2 ≥ 2
d) Routine demand for interior paint is accurately 1 ton more than that for exterior paint.
x2 > x1 + 1
Given an inventory system where Yearly demand = 120 units Ordering cost = Sh. 45 Price per unit = Sh. 200 Annual carrying cost = 24% of the unit cost Determine The economic or
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