PROJECT MANAGEMENT SKILLS
A factory manufactures two products A and B on three machines X, Y, and Z. Product A
requires 10 hours of machine X and 5 hours of machine Y 1 hour of machine Z. The
requirement of product B is 6 hours, 10 hours and 2 hours of machine X, Y and Z
respectively. The profit contribution of products A and B are Rs 23 per unit and Rs 32
per unit respectively. In the coming planning period the available capacity of
machines X, Y and Z are 2500 hours, 2000 hours and 500 hours respectively. Find the
optimal product mix for maximizing the profit.
SOLUTION:
To solve this problem, we need to formulate and solve a Linear Programming (LP) problem.
### 1. Formulate the Linear Programming Problem
**Variables:**
- Let \( x \) be the number of units of product A produced.
- Let \( y \) be the number of units of product B produced.
**Objective Function:**
Maximize profit \( P \):
\[ P = 23x + 32y \]
**Constraints:**
1. **Machine X Capacity:**
\[ 10x + 6y \leq 2500 \]
2. **Machine Y Capacity:**
\[ 5x + 10y \leq 2000 \]
3. **Machine Z Capacity:**
\[ x + 2y \leq 500 \]
4. **Non-negativity Constraints:**
\[ x \geq 0 \]
\[ y \geq 0 \]
### 2. Solve Mathematically (Graphical Method)
To solve graphically, follow these steps:
1. **Graph the Constraints:**
- **Machine X Constraint:** \( 10x + 6y \leq 2500 \)
- For \( x = 0 \): \( y = \frac{2500}{6} \approx 416.67 \)
- For \( y = 0 \): \( x = \frac{2500}{10} = 250 \)
- Plot these points and draw the line.
- **Machine Y Constraint:** \( 5x + 10y \leq 2000 \)
- For \( x = 0 \): \( y = \frac{2000}{10} = 200 \)
- For \( y = 0 \): \( x = \frac{2000}{5} = 400 \)
- Plot these points and draw the line.
- **Machine Z Constraint:** \( x + 2y \leq 500 \)
- For \( x = 0 \): \( y = \frac{500}{2} = 250 \)
- For \( y = 0 \): \( x = 500 \)
- Plot these points and draw the line.
2. **Find the Feasible Region:**
The feasible region is the area where all constraints overlap and where \( x \geq 0 \) and \(
y \geq 0 \).
3. **Determine the Corner Points:**
Find the intersection points of the lines:
- Intersection of \( 10x + 6y = 2500 \) and \( 5x + 10y = 2000 \):
Solve these equations simultaneously.
- Intersection of \( 10x + 6y = 2500 \) and \( x + 2y = 500 \):
Solve these equations simultaneously.
- Intersection of \( 5x + 10y = 2000 \) and \( x + 2y = 500 \):
Solve these equations simultaneously.
- Check intersections with axes and feasible region boundaries.
4. **Calculate the Objective Function:**
Substitute these corner points into the objective function \( P = 23x + 32y \) to find which
point gives the maximum profit.
### 3. Solve Algebraically (using Simplex Method or similar)
For exact calculations, we can use methods like the Simplex method. The solution can also
be verified using LP solvers.
### Intersection Points and Profit Calculation:
**Solve Intersection Points:**
1. **Intersection of \( 10x + 6y = 2500 \) and \( 5x + 10y = 2000 \):**
Multiply the second equation by 6:
\[ 30x + 60y = 12000 \]
Subtract the first equation:
\[ 20y = 9500 \]
\[ y = 475 \]
Substitute \( y = 475 \) into \( 5x + 10(475) = 2000 \):
\[ 5x + 4750 = 2000 \]
\[ x = -550 \] (not feasible)
2. **Intersection of \( 10x + 6y = 2500 \) and \( x + 2y = 500 \):**
Solve these equations:
\[ x + 2y = 500 \]
\[ x = 500 – 2y \]
Substitute into \( 10(500 – 2y) + 6y = 2500 \):
\[ 5000 – 20y + 6y = 2500 \]
\[ -14y = -2500 \]
\[ y = 178.57 \]
\[ x = 500 – 2(178.57) \approx 143 \]
3. **Intersection of \( 5x + 10y = 2000 \) and \( x + 2y = 500 \):**
Solve these equations:
\[ x + 2y = 500 \]
\[ x = 500 – 2y \]
Substitute into \( 5(500 – 2y) + 10y = 2000 \):
\[ 2500 – 10y + 10y = 2000 \]
\[ x = 500 \]
If \( x = 500 \), \( y = 0 \).
4. **Evaluate Objective Function at feasible points:**
- Point \( (0, 0) \): \( P = 23(0) + 32(0) = 0 \)
- Point \( (250, 0) \): \( P = 23(250) + 32(0) = 5750 \)
- Point \( (143, 178.57) \): \( P = 23(143) + 32(178.57) \approx 3299 + 5714 = 9013 \)
**Conclusion:**
The optimal product mix is \( x = 143 \) units of A and \( y = 178.57 \) units of B, with a
maximum profit of Rs 9013.