DTEQuantitative Methods LPTutorial
DTEQuantitative Methods LPTutorial
TUTORIAL
LINEAR PROGRAMMING
At the start of the current week there are 30 units of X and 90 units of Y in
stock. Available processing time on machine A is forecast to be 40 hours
and on machine B is forecast to be 35 hours.
The demand for X in the current week is forecast to be 75 units and for Y
is forecast to be 95 units. Company policy is to maximise the combined
sum of the units of X and the units of Y in stock at the end of the week.
Item X 13 20
Y 19 29
The company has 40 hours of machine time available in the next working
week but only 35 hours of craftsman time. Machine time is costed at £10
per hour worked and craftsman time is costed at £2 per hour worked. Both
machine and craftsman idle times incur no costs. The revenue received for
each item produced (all production is sold) is £20 for X and £30 for Y. The
company has a specific contract to produce 10 items of X per week for a
particular customer.