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An electronics company is engaged in the manufacture of two components C1 & C2 used in

telecom tower sets. Each unit of C1 cost the company ` 6 in wages and ` 7 in materials, while each unit of C2 costs the company ` 26 in wages and ` 17 in materials. The company sells both the products on two-period credit terms but the company's labour & material expenses must be paid in cash. The selling price of C1 is ` 40 per unit and of C2 is ` 90. Because of the strong monopoly of the company for these components it is assumed that the company can sell at the prevailing prices as many units as it produces. The company's production capacity is limited by two considerations. First at the beginning of the period 1, the company has an initial balance of ` 18,000/- . Second the company has an available 2500 hours of machine time and 1800 hours of assembly time. The production of each C1 requires 4 hours of machine time and 2 hours of assembly time, wherase the production of each unit of C2 requires 3 hours of machine time and 4 hours of assembly time. 

Formulate & solve the above problem as a LP problem.


Can use excel solver

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Maximum profit can be made by selling 460... View the full answer

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