Page 387 - PM Integrated Workbook 2018-19

Answers

Example 2

A company produces two products in three departments. Details are shown
below regarding the time per unit required in each department, the available
hours in each department and the contribution per unit of each product:

Product X: hours Product Y: Available

per unit hours per unit hours
Department A 8 10 11,000

Department B 4 10 9,000
Department C 12 6 12,000

Contribution p.u. $4 $8

There is unlimited demand for Product X, but demand for Product Y is limited
to 600 units per annum.

Determine, using a step-by-step approach, what the optimum production
plan is.

Example 2, continued

Let 'x' be the number of units of X to produce

Let 'y' be the number of units of Y to produce

Example 2, continued

Objective function: to maximise contribution C = 4x + 8y

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