NEO Chemical produces two products, namely A and B. Each product is produced by blending three types of raw materials (RM-1, RM-2, and RM-3). The revenue per unit of product A is £60 and the revenue per unit of product B is £50. The production department of the company uses 2 units of RM- 1,4 units of RM-2 and 5 units of RM-3 to produce one unit of product A. In order to produce one unit of product B, the production department uses 3 units of RM-1, 2 units of RM-2 and 4 units of RM-3. In order to meet customer demand, NEO Chemicals would like to produce at least 50 units of product A. In addition, the company would like to make sure that the total amount of product B is at least 2 times the amount of total production for product A. The company currently has 600 units of RM-1, 600 units of RM-2 and 1200 units of RM-3. Management wants to determine the production plan for these products so as to maximise total revenue. a) Define the decision variables and formulate a linear programming problem to maximise the total revenue.

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NEO Chemical produces two products, namely A and B. Each product is produced by blending three
types of raw materials (RM-1, RM-2, and RM-3). The revenue per unit of product A is £60 and the
revenue per unit of product B is £50. The production department of the company uses 2 units of RM-
1,4 units of RM-2 and 5 units of RM-3 to produce one unit of product A. In order to produce one unit
of product B, the production department uses 3 units of RM-1, 2 units of RM-2 and 4 units of RM-3.
In order to meet customer demand, NEO Chemicals would like to produce at least 50 units of product
A. In addition, the company would like to make sure that the total amount of product B is at least 2
times the amount of total production for product A. The company currently has 600 units of RM-1,
600 units of RM-2 and 1200 units of RM-3. Management wants to determine the production plan for
these products so as to maximise total revenue.
a) Define the decision variables and formulate a linear programming problem to maximise the
total revenue.
Transcribed Image Text:NEO Chemical produces two products, namely A and B. Each product is produced by blending three types of raw materials (RM-1, RM-2, and RM-3). The revenue per unit of product A is £60 and the revenue per unit of product B is £50. The production department of the company uses 2 units of RM- 1,4 units of RM-2 and 5 units of RM-3 to produce one unit of product A. In order to produce one unit of product B, the production department uses 3 units of RM-1, 2 units of RM-2 and 4 units of RM-3. In order to meet customer demand, NEO Chemicals would like to produce at least 50 units of product A. In addition, the company would like to make sure that the total amount of product B is at least 2 times the amount of total production for product A. The company currently has 600 units of RM-1, 600 units of RM-2 and 1200 units of RM-3. Management wants to determine the production plan for these products so as to maximise total revenue. a) Define the decision variables and formulate a linear programming problem to maximise the total revenue.
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