SMU MBA ASSIGNMENTS

1. An organisation produces X1 and X2 units of products R and S, respectively. In this case, the objective function and constraints are expressed as follows:

Maximise                        Z = 60X1 + 120X2

 Subject to,                     3X1 + 6X2   ≤   240         Raw material constraint                    

                                          2X1 + 4X2   ≤   800        Labour hours constraint             

                                          X1, X2         ≥   0            Non-negativity condition

Use graphical method to determine how many units of products R and S the organisation should produce to maximise its profits.

Answer 2(b) – Here,

We have to