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Company A makes whole wheat flour (W) and blanched flour (B). One machine is used to make both types of flour and cannot exceed 70 tons per day. Flour leaves the plant in trucks and loading facilities can handle 30 trucks per day. A truckload of type W flour weighs 1.4 tons; one truckload of type B weighs 2.8 tons. Each truck can carry either type of flour or a mixture of both. Both types of flour require a preservative that is in short supply, Company A can obtain at most 65 containers of preservative per day. One truckload of (finished) W flour requires an input of three preservative containers, and one truckload of B flour requires only one container. Plant Manager calculated the contribution from each truckload of W flour is $1000 and B flour is $1300. Company A is able to sell the flour, no matter which production combination is selected. Formulate the problem of determining the optimal number of truckloads of types W and B. How much of each type of flour should Company A produce?

Operation Management, Management Studies

  • Category:- Operation Management
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