Sunseel Industries Produces Two Types of Raw Materials a and B

question 51

Essay

Sunseel Industries produces two types of raw materials A and B, with a production cost of $4 and $8 per unit, respectively. The combined production of the raw materials A and B must be at least 700 units per month. At least 400 units of the raw material B and not more than 1200 units of the raw material A must be produced per month. The processing time for the raw material A is observed to be 5 hours and for B, it is found to be 4 hours. A total of 3000 such hours are available per month. How much of each raw material should be produced in order to minimize the cost. Develop a linear program that Sunseel Industries can use to determine how many units of each raw material to produce to minimize the total cost.

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Definitions:

Transportation Cost

Expenses associated with the movement of goods or materials from one location to another, including fuel, labor, and maintenance expenses.

Economic Deregulation

Reduction of government power over certain industries, aimed at improving market efficiencies and fostering competition.

Carriers

Companies that provide transportation services for goods, typically including freight companies, airlines, and shipping lines.

Competition

The rivalry between businesses or suppliers to attract customers and achieve higher sales, often leading to innovation and better quality offerings.