A company produces three products P1,P2 and P3 from two raw materials A and B, and lobar L. one unit of product P1 requires one unit of A, three unit of B, and two units of L. one unit of product P2 requires 2 unit of A and B each, three unit of L, while one unit of P3 needs two unit of A six unit of B and four unit of L. the company has a daily available of 8 unit of A, 12 unit of B and 12 unit of L. it is further known that the unit contribution margin for the product is birr 3,2 and 5 respectively for P1, P2 and P3.
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