Question

A company has four factories F1, F2, F3 & F4 manufacturing the same product. Production & raw

material costs differ from factory to factory & are given in the following table. The transportation

costs from the factories to sales depots S1, S2, S3 & S4 are also given. The sale price & the total

requirement at each depot as also the product capacity at each factory is also stated. Determine the

most profitable production & distribution schedule & the corresponding profit. The surplus

production should be taken to yield zero profit.

Particulars F1 F2 F3 F4 Sales price/unit Requirements/unit

Production cost per unit

Raw material cost per unit

15

10

18

9

14

12

13

9

Transportation cost per unit to

S1

S2

S3

3

1

5

9

7

8

5

4

3

4

5

6

34

32

31

80

120

150

Production capacity (units) 10 150 50 100​

Answer 1

310 666777777777787888888898899999999999999999999999999999