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Q.

A manufacturer produces two products, X and Y, and wants to determine the optimal production mix that maximizes the profit. The profit per unit of X is Rs. 5 and the profit per unit of Y is Rs. 8. The manufacturer has a maximum of 500 hours of machine time and 600 hours of labor time available per day. Each unit of X requires 2 hours of machine time and 3 hours of labor time, while each unit of Y requires 4 hours of machine time and 2 hours of labor time. Formulate the linear programming problem to determine the optimal production mix of X and Y, what is the maximum profit? 

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a

1300

b

1200

c

1500

d

300

answer is D.

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Detailed Solution

Let x be the number of units of X produced. Let y be the number of units of Y produced.

The objective function, to be maximized, is given by:

Z = 5x + 8y

The constraints are:

2x + 4y <= 500 (machine time) 3x + 2y <= 600 (labor time) x >= 0, y >= 0

The linear programming problem can be solved graphically or by using the simplex method. The optimal production mix is x = 100 and y = 100, with a maximum profit of Rs. 1300.

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