Question

An electronics company is engaged in the manufacture of two components “Registers”
and “Diodes” used in telecom tower sets. Each unit of “Register” and “Diode” costs the
company Rs.6 and Rs.26 in wages and Rs.7 and Rs.17 in materials respectively.
The company sells both the products on two-period credit terms but the company’s labour and
material expenses must be paid in cash. The selling price per unit of Register is Rs.40 and per
unit of Diode is Rs.90. Due to the strong monopoly of the company for these components, it is
believed that the company can sell as many units as it produces at the prevailing prices.
The company’s production capacity is limited by two considerations: -
 At the beginning of Period, the company has an initial balance of Rs.18000.
 The company has an available 2500 hours of machine time and 1800 hours of assembly
time.
The production of each unit of Register requires 4 hours of machine time, and two hours of
assembly time. Whereas, the production of each unit of Diode requires 3 hours of machine time
and four hours of assembly time. Formulate the LPP. And find the optimal solution.

Answer 1

Profit / Unit =

Optimal Solution will be the mix of two products that maximizes the profits subjected to the given constraints

Design:

LPP Model Design in Solver

Result

Therefore 460 Registers and 220 Diodes are the optimum quantity.