Question

Volkswagen wants to produce three cars: A, B and C. The profit per car, in million rupees, is 4, 6
and 2, respectively. These cars require two types of resources; manpower and raw materials. The
LP model formulated for determining the optional product mix is as follows:
Maximize = 41 + 62 + 23 subject to the constraints
1 + 2 + 3 ≤ 3 (Manpower required), 1 + 42 + 73 ≤ 9 (Raw material available)
and 1, 2, 3 ≥ 0
where 1, 2 and 3 are the number of units of A, B, C, respectively, to be produced, and Z is
the total profit (in million rupees).
I. Find the optimal product mix and the corresponding profit using simplex method.
II. Find the shadow prices.
III. Find the range of the profit contribution of car C in the objective function, such that the
current optimal product mix remains unchanged.
IV. What shall be the new optimal product mix when the unit profit from car C is increased
from 2 to 10?

Answer 1

Answer:

9265395719636815362866272262552526262626262626262662