The Oaks of Mtandire Company owns a small furniture factory that produces both indoor and outdoor house

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⦁ The Oaks of Mtandire Company owns a small furniture factory that produces both indoor and outdoor house furniture for wholesale distribution. Two basic raw materials, A and B, are used to manufacture the furnitures. The maximum availability of A is 32 tons a day; that of B is 36 tons a day. The daily requirement of the raw materials per ton of the indoor and outdoor furnitures are summarized in the following table:

Raw Materials Outdoor Indoor Maximum Availability

A 2 4 32

B 4 2 36

 

A market survey has established that the daily demand for the indoor house furniture cannot exceed that of external furniture by more than 2 ton. The survey also shows that the maximum demand for indoor furniture is limited to 4 tons daily. The wholesale price per ton is MWK 300, 000 for outdoor furniture and MWK 200, 000 for indoor furniture.

Formulate a Linear Programming Problem

⦁ Ecobank is in the process of devising a loan policy that involves a maximum of $12 million. The following table provides the pertinent data about available loans:

 Bad debts are unrecoverable and produce no interest revenue. Competition with other financial institutions dictates the allocation of at least 40% of the funds to farm and commercial loans. To assist the housing industry in the region, home loans must equal at least 50% of the personal, car, and home loans. The bank limits the overall ratio of bad debts on all loans to at most 4%. Formulate a Linear Programming Problem.

 

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