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Q. ABC Corp. produces both interior also exterior paints from two raw materials, M1 also M2. The subsequent table provides the basic data:

Tons of raw material per ton of Maximum daily availability (tons)
Exterior paint Interior paint
Raw material, M1 6 4 36
Raw material, M2 1 2 12
Profit per ton ($1,000) 8 6

A market survey indicates that the daily demand for interior paint cannot exceed that of exterior paint by more than 2 tons. Also, the maximum daily demand of interior paint is 4 tons. ABC Corp. wants to find out the optimal product mix of interior also exterior paints that maximizes the total daily profit.

a) Formulate the linear programming model for this problem.

b) Solve this model utilizing the graphical approach, EXCEL, or LINDO.

c) Illustrate what is the limiting raw material? Illustrate what alternatives could you suggest?

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