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The Beacon Company:Formulation & solution of LPP

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The Beacon Company is a large manufacturer of automotive supplies. The company has decided to spend $35 million next year to expand it manufacturing and warehouse facilities. Each warehouse will cost $3.5 million and will contribute $17,000 per month toward profitability. Each plant will cost $5.5 million and will contribute $36,000 per month toward profitability. Management does not want to build more than seven warehouses or four plants next year. How many plants and warehouses should be constructed to maximize profitability?

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Solution Summary

This posting contains solution to following LPP using excel solver.

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