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Production Planning – Product Selection
A petrochemical factory produces 3 products (P1, P2, P3), and it sells them at the prices of table 1. It needs 4 raw materials (benzene, toluene, xylene and acetylene). Each product has different needs in raw materials (table 1). The factory can only get a 5,000 units of benzene (at $0.5 per unit), 20,000 units of toluene (at $1), 20,000 units of xylene (at $0.7) and 10,000 units of acetylene (at $0.3). What is the optimum production plan to maximize the profits?
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Lake Charles Seafood makes 500 wooden packing boxes for fresh seafood per day, working in two 10-hour shifts. Due to increased demand, plant managers have decided to operate three 8-hour shifts instead.
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