A company can produce three products A, B and C. the products yield a contribution of Kshs.8, 5 and 10 respectively. The products use a machine which has 400 hours capacity. Each unit of the product uses 2, 3 and 1 hour respectively of the machines capacity. There are only 150 units available in the period of a special component which is used singly in product A and C. Only 200kgs of a special alloy is available in the period. The usage of special alloy is 2kgs per unit and 4kgs per unit respectively. There is an agreement with a trade association to produce no more than 50 units of product B in the period. Advise the company on the production plan that will maximize contribution.
A company can produce three products A, B and C. the products yield a contribution of Kshs.8, 5 and 10 respectively. The products use a machine which has 400 hours capacity. Each unit of the product uses 2, 3 and 1 hour respectively of the machines capacity. There are only 150 units available in the period of a special component which is used singly in product A and C. Only 200kgs of a special alloy is available in the period. The usage of special alloy is 2kgs per unit and 4kgs per unit respectively. There is an agreement with a trade association to produce no more than 50 units of product B in the period. Advise the company on the production plan that will maximize contribution.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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![d) A company can produce three products A, B and C. the products yield a contribution of Kshs.8,
5 and 10 respectively. The products use a machine which has 400 hours capacity. Each unit of
the product uses 2, 3 and 1 hour respectively of the machines capacity. There are only 150 units
available in the period of a special component which is used singly in product A and C. Only
200kgs of a special alloy is available in the period. The usage of special alloy is 2kgs per unit and
4kgs per unit respectively. There is an agreement with a trade association to produce no more
than 50 units of product B in the period. Advise the company on the production plan that will
maximize contribution.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7667bd91-87be-494b-9fcc-47c51451bc30%2Ff301dced-d7ea-47e6-9f35-d78e58514eb7%2F8c722n_processed.png&w=3840&q=75)
Transcribed Image Text:d) A company can produce three products A, B and C. the products yield a contribution of Kshs.8,
5 and 10 respectively. The products use a machine which has 400 hours capacity. Each unit of
the product uses 2, 3 and 1 hour respectively of the machines capacity. There are only 150 units
available in the period of a special component which is used singly in product A and C. Only
200kgs of a special alloy is available in the period. The usage of special alloy is 2kgs per unit and
4kgs per unit respectively. There is an agreement with a trade association to produce no more
than 50 units of product B in the period. Advise the company on the production plan that will
maximize contribution.
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