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Chemco produces three products: 1, 2, and 3. Each pound of raw material costs $25. It undergoes processing and yields 3 oz of product 1.

It costs $1 and takes 2 hours of labor to process each pound of raw material.

Only 3800 pounds of raw materials are available. Product 1 can be used in 2 ways. First, it can be sold for 10 dollars per ounce.Second, two ounces of Product 1 can be processed into one ounce of Product 2. This requires 2 hours of labor and costs 1 dollar. Each ounce of Product 2 can be used in one of 2 ways. First, it can be sold for 30 dollars per ounce. Second, it can be processed into one ounce of Product 3. This requires one hour of labor and costs 6 dollars . Product 3 is sold for 60 an ounce.  Max number of ounces of products 1 2 and 3 that can be sold are 5000, 5000, and 3000. A max of 25,000 hours of labor are available. 

1. Make the process model

2. Write the complete LP Model.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92508728
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