Exercise on production mix
Completion requirements
View
Exercise on production mix
A Brewery Company is realizing beer Type A, beer Type B and beer Type C.
Here below you can find some data about the three product lines:
| c1 | c2 | c3 | |
|---|---|---|---|
| Beer Type A | Beer Type B | Beer Type C | |
| Price (€/u) | 2,50 €/u | 2,00 €/u | 2,30 €/u |
| Variable cost (€/u) | 0,70 €/u | 0,80 €/u | 0,90 €/u |
| Weekly demand (u) | 2.500 u | 2.000 u | 3.000 u |
| Machine time (min/u) | 4 min/u | 3 min/u | 2,5 min/u |
All three products use the same machine.
The machine time is limited to 9.300 minutes a week.
Which combination or products should be manufactured if the company has to produce the highest profit?