Assignment: Linear Programming Applications
SAPIC
Question 1:
SABIC , Inc. is a firm that produces chemical based products. In a particular process 3 Material are used to produce 2 products. The Material requirements per ton are:
|
Product
|
Material 1
|
Material 2
|
Material 3
|
|
Fuel additive
|
0.4
|
0
|
0.6
|
|
Solvent base
|
0.5
|
0.2
|
0.3
|
For the current production period SABIC has available the following quantities of each material. Because of spoilage, any materials not used for current production must be discarded.
|
Material Available for Production
|
# Tons
|
|
Material 1
|
20
|
|
Material 2
|
5
|
|
Material 3
|
21
|
If the contribution to the profit is 40 SAR for each ton of fuel additive and 30 SAR for each ton of solvent base,
1) Use given data to formulate a linear programming model.
2) Set up the template for this problem on Excel and show how you would solve this problem on Excel Solver.
3) What is the maximum profit?
4) How many tons of each product should be produced?
5) How many resources were used?
You are required to turn in an Excel file with the solution which include Excel sheet, Answer report and Sensitivity report and answer of previous questions.