A company produces six products in the followingfashion. Each unit of raw material purchased yields fourunits of product 1, two units of product 2, and one unit ofproduct 3. Up to 1,200 units of product 1 can be sold, andup to 300 units of product 2 can be sold. Each unit ofproduct 1 can be sold or processed further. Each unit ofproduct 1 that is processed yields a unit of product 4.Demand for products 3 and 4 is unlimited. Each unit ofproduct 2 can be sold or processed further. Each unit ofproduct 2 that is processed further yields 0.8 unit of product5 and 0.3 unit of product 6. Up to 1,000 units of product 5can be sold, and up to 800 units of product 6 can be sold.Up to 3,000 units of raw material can be purchased at $6 perunit. Leftover units of products 5 and 6 must be destroyed.It costs $4 to destroy each leftover unit of product 5 and $3 TAB LE 24Sales ProductionProduct Price ($) Cost ($)1 742 643 424 315 20 56 35 5 to destroy each leftover unit of product 6. Ignoring rawmaterial purchase costs, the per-unit sales price andproduction costs for each product are shown in Table 24.Formulate an LP whose solution will yield a profitmaximizing production schedule.
A company produces six products in the following
fashion. Each unit of raw material purchased yields four
units of product 1, two units of product 2, and one unit of
product 3. Up to 1,200 units of product 1 can be sold, and
up to 300 units of product 2 can be sold. Each unit of
product 1 can be sold or processed further. Each unit of
product 1 that is processed yields a unit of product 4.
Demand for products 3 and 4 is unlimited. Each unit of
product 2 can be sold or processed further. Each unit of
product 2 that is processed further yields 0.8 unit of product
5 and 0.3 unit of product 6. Up to 1,000 units of product 5
can be sold, and up to 800 units of product 6 can be sold.
Up to 3,000 units of raw material can be purchased at $6 per
unit. Leftover units of products 5 and 6 must be destroyed.
It costs $4 to destroy each leftover unit of product 5 and $3 TAB LE 24
Sales Production
Product Price ($) Cost ($)
1 74
2 64
3 42
4 31
5 20 5
6 35 5
to destroy each leftover unit of product 6. Ignoring raw
material purchase costs, the per-unit sales price and
production costs for each product are shown in Table 24.
Formulate an LP whose solution will yield a profitmaximizing production
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