| A company makes three products
in three processes as shown in the schematic below. The products
are A, B and C. The products are made with the raw materials
1, 2 and 3. Processes B and C also require the outputs of the
previous processes as input. Each unit processed in B requires
two units of product A, and each unit of product C requires
1.2 units of product B. Additional information about the products
and raw materials is shown in the tables. The product revenues
are for units sold, not for units used in other processes.
| Product |
A |
B |
C |
Raw Mat. |
1 |
2 |
3 |
| Unit Rev.
|
$100
|
$350
|
$500
|
Unit Cost
|
$50
|
$20
|
$40
|
| Max Sales
|
100
|
150
|
200
|
Available
|
200
|
150
|
200
|
Each unit processed in A requires 1 unit of RM 1.
Each unit processed in B requires 2 units of Product A, 1 additional
unit of RM 1 and 0.6 units of RM 2.
Each unit processed in C requires 1.2 units of Product B, 0.3
additional units of RM 1, 0.2 additional units of RM 2 and 1
unit of RM 3.
Use process flow analysis to model this problem. Create three
processes, one to model each product. Using the Economic Analysis
button, create the Project worksheet. Enter the economic data.
Create an LP model and use the LP model to find the optimum
product mix for the three products. Identify the bottlenecks.
|
