A
manufacturing firm produces two products, 1 and 2. The requirements for labor and materials for production of each
product, as well as the resource availabilities, are as follows:
|
Resource Requirements |
|
Resource |
Product 1 Product 2 |
Total Available Resources |
Labor Material |
2 hr/unit 4
hr/unit 3 lb/unit 1
lb/unit |
80 hr 60 lb |
The unit profit is $100 for product 1 and $80 for product 2. Management’s problem is to determine the optimal product mix that will maximize profit subject to availability of the limited resources.