Sauces are both made by blending two ingredients

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Reference no: EM132234606

CWD Agro Inc. produces two pepper sauces, Spicy Diablo and Red Baron. These sauces are both made by blending two ingredients, A and B. A certain level of flexibility is permitted in the formulae for these products. The allowable percentages, along with revenue and cost data, are given in the following table. Up to 80 quarts of A and 60 quarts of B could be purchased. CWD can sell as much of these sauces as it produces. Sauce Ingredient A Ingredient B Sales price per quart Spicy Diablo At least 25 % At least 40 % 4.0 Red Baron At most 75% At most 50% 3.0 Cost per Quart 1.7 2.5 a) Formulate an LP whose objective is to maximise the net profit from the sale of the sauces. 20 marks Question 1 C Better Products, Inc. manufactures three products on two machines. In a typical week, 40 hours are available on each machine. The profit contribution and production time in hours per unit are as follows: Two operators are required for machine 1; thus, 2 hours of labor must be scheduled for each hour of machine 1 time. Only one operator is required for machine 2. A maximum of 100 labor-hours is available for assignment to the machines during the coming week. Other production requirements are that product 1 cannot account for more than 50% of the units produced and that product 3 must account for at least 20% of the units produced. Formulate the above as a LP problem with the ratio and other constraints and decision variable.

Reference no: EM132234606

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