Define variables
A, B, C = Amount of products
A, B and C processed.
AS , BS, CS = Amount of products
A, B and C Sold.
AB the amount of A used for production of B.
BC the amount of B used for production of C
R1, R2 and R3 amounts of raw
materials 1, 2 and 3 used.
Objective is to maximize profit.
Z = 100AS + 350BS + 500CS
- 50R1 - 20R2 - 40R3
Constraints describe conservation of flow
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Process A:
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AS + AB - A = 0
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Process B:
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BS + BC - B = 0
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Process C:
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CS - C = 0
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RM 1:
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A + B + 0.3C - R1 = 0
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RM2
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0.6B + 0.2C - R2 = 0
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RM3
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C - R3 = 0
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A in B:
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AB - 2B = 0
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B in C:
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BC - 1.2C = 0.
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Simple upper bounds limit production
0 ¾ AS ¾ 100, 0 ¾ BS ¾ 150, 0 ¾ CS
¾ 200
Simple upper bounds imit raw material purchases
0 ¾ R1 ¾ 200, 0 ¾ R2 ¾ 150, 0 ¾ R3
¾ 200
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