Question

Suzuki Maruti produces three products: Baleno, Ciaz, and S-Cross models of cars. These products have the following resources requirements:

Product Model	Cost/Unit	Labour-Hours/Unit
Baleno	$7.00	2
Ciaz	$10.00	3
S-Cross	$35.00	5

The manufacturer has a daily production budget of $5,000.00 and a maximum budget of 800 hours of labour. Selling prices are $15.00, $25.00 and $55.00 respectively. Maximum daily customer demand for S-Cross model is 100 units. The company desires to know the optimal product mix that will maximize profit. Formulate a linear programming model for this problem.

Answer 1

x = no. of baleno

y = no. of ciaz

z = no. of s-cross

to maximize :

profit :

profit = (profit per unit baleno)*x + (profit per unit ciaz)*y + (profit per unit s-cross)*z

($15 - $7)*x + ($25-$10)*y + ($55-$35)*z

p = 8*x + 15*y + 20*z

constraints :

1. production budget of $5,000.00

production cost (in dollars) = cost balneo * x + cost ciaz * y + cost s-cross * z

7 * x + 10*y + 35*z <= 5000

2.

maximum budget of 800 hours of labour

hours of labour = labour hours balneo * x + labour hours ciaz * y + labour hours s-cross * z

2*x + 3*y + 5*z <= 800

3. Maximum daily customer demand for S-Cross model is 100 units

z <= 100

4.

x,y,z >= 0

solution :

Therefore,

maximum profit is $4000