Linear Planning & Mixed Integer Programming ProblemsWatch
product 1 2 3
sales price [€/unit] 4.00 6.00 6.00
production cost [€/unit] 1.50 3.00 2.00
processing time [min/unit] 1.25 1.00 4.00
max. sales volume [units] 10,000 13,250 20,000
a) Formulate a linear planning model to determine production volumes of the products with the objective to maximize total profit margin. Explicitly use the data provided. Define any symbols you might need.
b) Amend your model from part a) for the following situation: the maximum sales volume of products 1 and 2 together (!) could be increased by 2,000 units (again: for both products together!) when launching an image campaign with a cost of 1,500 €.
Be careful to formulate a linear or mixed integer / binary model. Avoid other non-
linearities. Define all additional symbols used. No solution is required, just the model amendments!
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