ABC Corp. produces both interior and exterior paints from two raw materials, M1 and M2. The following table provides the basic data:
Tons of raw material per ton of Maximum daily availability (tons)
Exterior paint Interior paint
Raw material, M1 6 4 36
Raw material, M2 1 2 12
Profit per ton ($1,000) 8 6
A market survey indicates that the daily demand for interior paint cannot exceed that of exterior paint by more than 2 tons. Also, the maximum daily demand of interior paint is 4 tons. ABC Corp. wants to determine the optimal product mix of interior and exterior paints that maximizes the total daily profit.
a)Formulate the linear programming model for this problem.
b)Solve this model using the graphical approach, EXCEL, or LINDO.
c)What is the limiting raw material? What alternatives could you suggest?