Contracted to produce two products


A company has contracted to produce two products, A and B, over the months of June, July and August. The total production capacity (expressed in hours) varies monthly. The following table provides the basic data of the situation Demand A (units) 500 June, 5000 July, and 750 August Demand B (units) 1000 June, 1200 July, and 1200 August Capacity (hours) 3000 June, 3500 July, and 3000 August The production rates in units per houre are .75 and 1 for products A and B, respectively. All demand must be met. However, demand or a later monthe may be filled from the production in an earlier one. For any carryoer from one month to the next, holding costs of $0.90 and $0.75 per unit per month are charged for products A and B, respectively. The unit production costs for the two products are $0.30 and $.28 for A and B, respectively. Develop a Linear Programming model to determine the optimum production schedule for the two products and find the optimum solution using Excel Solver.

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Mathematics: Contracted to produce two products
Reference No:- TGS0873857

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