Answer to Question #216274 in Finance for neha

Question #216274

A firm uses three machines in the manufacture of three products. Each unit of product A requires 3 hours on machine I, two hours on machine II, and one hour on machine III. While each unit of product B requires four hours on machine I, one hour on machine II, and three hours on machine III. While each unit of product C requires two hours on each of the three machines. The contribution margin of the three products is birr 30, birr 40 and birr 35 per unit respectively. The machine hours available on the three machines are 90, 54, and 93 respectively. a. Formulate the above problem as a linear programing model b. Obtain optimal solution to the problem by using the simplex method. Which of the three products shall not by produced by the firm? Why? c. Calculate the unused capacity if any

Expert's answer
Dear neha, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!


No comments. Be the first!

Leave a comment

Ask Your question

New on Blog