Linear Programming Model
For the linear programming model, we select the goal
of maximizing net operating income, revenue minus raw
material cost.
Decision Variables:
: number
of units of product P to produce during the week
: number
of units of Q to produce during the week
: number
of units of R to produce during the week
: number
of units of raw material j to
purchase, j =
1...4.
Objective: Maximize
operating income = Revenue  Raw Material Cost
Subject
to:
Machine
Time Limit Constraints
Raw
Material Constraints
Nonegativity
and Upper Bounds
