A Company Produces Two Products a and B $\$ 7,200$ as a Production Planner, Assume That You Have the Be

Essay

A company produces two products A and B. Both can be produced in any of the two machines called old machine and new machine. The following table gives the cost/unit, selling price per unit, maximum daily demand, daily variable cost budget, etc. for the products. The planning horizon is 1 day of 480 working minutes.

Each machine is available for 480 minutes a day. Daily variable cost budget is $\$ 7,200$ . As a production planner, assume that you have the freedom to decide the type and number of products to make and which machine to use, in order to maximize daily net contribution (selling price - variable cost). Formulate this as a linear program. Specify the decision variables, constraints, and the objective function. Solve it using any computer program.