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MODEL formulationExample 1 : A pharmaceutical company produces 2 pharmaceutical products A and B.

Production of both product requires the same process1st an 2nd. The production of B results also in by product C at no extra cost. The product A can be sold at a profit of Rs 3 per unit and B at a profit of Rs 8 per unit. Some of this by-product can be sold at unit profit of Rs 2 , the remainder has to be destroyed and destruction cost is Rs 1 per unit. Forecasts show that only upto 5 units of C can be sold. The company gets 3 unit of C for each unit of B produced. The manufacturing times are 3 hours per unit for A on process 1 st and 2nd respectively and 4 and 5 hours per unit for B process 1st and 2nd respectively. As C is by product so no time to be taken for that in consideration? The available times are 18 and 21 hours of process 1st and 2nd respectively . Formulate this problem as an LP model to determine the quantity of A and B which should be produced keeping C in mind, to make the highest profit of Company?

Example 2- An advertising company wishes to plan ad campaign in 3 different media Television, Radio, Magazine. The purpose of this ad campaign is to reach as many potential customers as possibleTelevision Prime Prime Day Time 40 K 75 K 9L 4L Radio Magazine

Cost of Adverising Unit Number of Potential Customers reached per unit 4L Number of Women Customers reached per unit 3L K = '000 and L is ' 00,000

30 K 5L 2L

15 K 2L 1L

The company does not want to spend more then 8 Lakhs on Advertising . It is further required that (i) (ii) (iii) (iv) At least 2 million exposure take place among women Advertising is limited on TV to Rs 5,00,000 At least 3 advertising units be bought on prime day and 2 units during prime time That number of advertising units on radio and magazine each should be between 5 and 10

Formulate this problem as an LP is model to maximize potential customers reach.

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