Requirements at a minimum total production cost


Problem: K&L Corp. manufactures two products that are sold as raw materials to different companies. K&L's management, basing it on their analysis of their inventory and forecasted demand, specified that the combined production for products A and B must total at least 350 liters with 600 hrs. of processing time available. Another thing to consider, they must satisfy one of their VIP client's order of 125 liters of product A. Product A's processing time per liter is 2 hrs., and product B's processing time per liter is 1 hr. K&L's objective is to satisfy these requirements at a minimum total production cost. Production costs for product A is $3 per liter and for product B $2 per liter.

 

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Other Management: Requirements at a minimum total production cost
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