A company produces three products A, B and C by using two raw materials X and Y. 4000 units of X and 6000 units of Z are available for production. The requirement of raw materials by each product is given below: Raw material Requirement per unit of product A B C X 2 3 5 Y 4 2 7 The labor time for each unit of product A is twice that of product B and three times that of product C. The entire labor force of the company can produce the equivalent of 2500 units of product A. A market survey indicates the minimum demand of the three products are 500, 500 and 375 respectively for A, B and C. However, their ratio of number of units produced must be equal to 3: 2: 5. Assume that the profit per units of product A, B and C are Birr 60, 40 and 100 respectively. a) Formulate a LPM for this problem. b) Use the simplex method to solve this model.
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