1 / 11

Production Process Model

MANSCI S01 September 30, 2013 Group G Maranon, Katrina Ng, Katrina Uy, Rykiel Valenzuela, Nikki. Production Process Model. Often characterized by the fact that some of the products produced are inputs to the production of other products. Production Process Model.

nicholas-phelps
Télécharger la présentation

Production Process Model

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. MANSCI S01 September 30, 2013 Group G Maranon, Katrina Ng, Katrina Uy, Rykiel Valenzuela, Nikki Production Process Model

  2. Often characterized by the fact that some of the products produced are inputs to the production of other products. Production Process Model

  3. Repco produces three drugs: A, B, and C and can sell these drugs in unlimited quantities at unit prices P80, P700, and P1,000, respectively. Producing a unit of drug A requires 1 hour of labor. Producing a unit of drug B requires 2 hours of labor and 2 units of drug A. Producing a unit of drug C requires 3 hours of labor and 1 unit of drug B. Any drug A that is used to produce drug B cannot be sold separately, and any drug B that is used to produce drug C cannot be sold separately. A total of 4,000 hours of labor is available. Case: Production Process

  4. Task: Use linear programming approach for Repco to maximize its sales revenue. Case: Production Process

  5. Facts and Variables: • Decision Variables: A = units of Drug A to produce B = units of Drug B to produce C = units of Drug C to produce 2B = units of Drug A to produce Drug B 1C or C = units of Drug B to produce Drug C

  6. Revenue Function: Revenue = 80 (Units of Drug A less those used to produce Drug B) + 700 ( Drug B less those used to produce Drug C) + 1000 Units of Drug C Revenue = 80 (A – 2B) + 700 (B – C) + 1000 C = 80 A – 160 B + 700 B – 700 C + 1000 C = 80 A + 540 B + 300 C

  7. Labor hours: 1 A + 2 B + 3 C ≤ 4000 • Units of Drug A to produce Drug B 2 B ≤ A - A + 2 B ≤ 0 • Units of Drug B to produce Drug C C ≤ B - B + C ≤ 0 Constraints:

  8. Constraints:

  9. Solver Template:

  10. Produce 2000 units of Drug A, with a revenue of P160,000. Produce 1000 units of Drug B, with a revenue of P540,000. Produce 0 units of Drug C The maximum revenue that can be derived by REPCO is P700,000. Conclusion:

  11. Thank You! 

More Related