A Drug company produces two types of certain drugs among its current production. These two types of drugs are produced from mixing four different chemical and herbs materials which are supplied from external suppliers. The company considers the cost of these chemical and herbs materials and the sales prices that help the company to meet the incoming orders within its available resources.
These two types of drugs are produced by mixing the four different components as shown in the following table:
Percentage of the material used per unit Type of Drugs
Herb -2 Herb -1 Chemical
Material -2 Chemical
Material-1
0.25 0.40 0.20 0.15 Drug-1
0.30 0.51 0.10 0.09 Drug-2
450 350 250 200 Available Quantity (units)
The production cost per unit is 280 and 360 AED from both types of drugs respectively. The sales prices for both types of drugs are 350 and 410 AED per unit respectively.
As a business analyst formulate the Linear Programming Model for this problem to help the company management to determine the production mix that maximizes the total net profit.