Question

A & B manufactures and sells two types of products to a number of customers. The resources are as follows:

Material Type	Product X	Product Y	Available
Material P	8	10	31,250
Material Q	10	5	20,000
Direct Labour	4	5	17,500

Maximum sales(demand) for X is 1000 units and Y 3000 units.Contribution margin X $96 and Y $110

Formulate a linear programme

Solve in excel

Write a brief report to explain the analysis

Answer 1

The linear programming based on above information can be formulated as follows:

Let the number of product X be x and number of product Y be y.

Maximize Z = 96x + 110y

Subject to constraints:

8x + 10y < = 31250

10x + 5y < = 20000

4x + 5y < = 17500

Step 1: Put the data onto the spreadsheet

Step 2: Define the Objective Function Constraint

Step 3: Define the material P constraint

Step 4: Define the Material Q constraint

Step 5: Define the Direct Labor Constraint

Step 6: Go to data --> solver

Step 7: Select the data

Step 8: Click Solve

As per the output, the maximum profit is $ 349583.3 at 729 units of Product X and 2541 units of Product Y.