A company has the opportunity to produce 3 products (P1; P2; P3) out of 3 Materials (A1; A2; A3). The estimated margin of the products is:
P1= 10$, P2= 6$ and P3= 4$
Please evaluate in which quantity the products have to be produced to show the highest margin possible:
Material P1 P2 P3 Available Quantity
A1 2 1 6 300ea
A2 6 5 1 540ea
A3 4 2 4 320ea
B, Create the system of equations and out of it a table for usage of the Simplex Method (just the table no evaluation!)
C, Evaluate the margin by knowing the result will be 65, 30 and 0.
a) This is a maximization problem.
We are to maximize the total margin M=10x1+6x2+4x3 with constraints
An objective function is analyzed using the Simplex Method. The expert estimates the margin of the product. The opportunity to produce three products are determined.