GIANT MOTOR COMPANY - I

Plant Characteristics
Lyra Libra Hydra New Lyra New Libra
Capacity 1000 800 900 1600 1800
Fixed Cost 2000 2000 2600 3400 3700

Profit Margin
Lyra 2 0 0 2.5 2.3
Libra 0 3 0 3 3.5
Hydra 0 0 5 0 4.8

Demand Revenue 11140

Lyra 1400 FixedCost 7100
Libra 1100 Profit 4040
Hydra 800

Decision factors
0 0 0 1 1
Lyra 0 0 0 1400 0
Libra 0 0 0 100 1000
Hydra 0 0 0 0 800
 Restrictions Solution:
1 <= 1 The company should expand the capacity of the
1 <= 1 Lyra and Libra plants
New Lyra Plant
Production Capacity Produce 1400,000 Lyra and 100,000 Libra
0 <= 0 New Libra Plant
0 <= 0 Produce 1000,000 Libra and 800,000 Hydra
0 <= 0
1500 <= 1600
1800 <= 1800 Solution:
The company should expand the capacity of the
Demand Constraints Lyra and Libra plants
Production New Lyra Plant
Lyra 1400 <= 1400 Produce 1.4 million Lyra and 0.1 million Libra
Libra 1100 <= 1100 New Libra Plant
Hydra 800 <= 800 Produce 1 million Libra and 0.8 million Hydra

Shortage
Lyra 0
Libra 0
Hydra 7.74E-11