Sweet Co. produces two types of candies: energy candy and happy candy.

 Ingredients for both

candies are sugar, nuts and chocolate. Currently, the company has 100 kg of sugar, 20kg of nuts
and 30kg of chocolate in stock. The mixture of energy candy contains at least 20% nuts. The
mixture of happy candy contains at least 10% nuts and 15% chocolate. Assume that one kg of
each ingredient contributes one kg to the final candy product. Each kg of energy candy can be
sold at PhP 25 and each kg of happy candy be sold at PhP 20. Formulate an LP model to
maximize the revenue. 

DECISION VARIABLES:
Let E be the energy candy produced
Let H be the happy candy produced

Let ES be the Sugar, EN be the Nut, EC be the Chocolate used in Energy candy
Let HS be the Sugar, HN be the Nut, HC be the Chocolate used in Happy candy

OBJECTIVE FUNCTION:
Maximum Profit = 25E + 20H

CONSTRAINTS:

E = ES + EN + EC

H = HS + HN + HC

ES + HS ≤ 100

EN + HN ≤ 20

EC + HC ≤ 30

EN ≥ 0.20E

HN ≥ 0.10H
HC ≥ 0.15H

E, H, ES, EN, EC, HS, HN, HC ≥ 0

The XYZ Company of biscuits is a revenue maximizing firm. It has chosen to focus on the
production and sale of two goods: A and B. Good A requires 1 hour of skilled labor and 4 kilos
of metal. It is a standard product and retails for PhP 40. Good B is a higher quality version of
good A. It needs 2 hours of skilled labor and demands 3 kilos of metal. It sells for a slightly
higher price of PhP 50 per unit. Under current operating conditions, the firm is prepared to hire
40 hours worth of labor each day and it has a long term contract with a supplier who can deliver
120 kilos of metal each day. Formulate an LP model to maximize the revenue.

Decision Variables:

Let x be the Good A produced and sold

Let y be the Good B produced and sold

MATERIALS Good A Good B

SKILLED LABOR 1 HR 2 HR ≤ 40
KILOS OF METAL 4 KG 3 KG ≤ 120 KG
PROFIT 40 PHP 50 PHP

Maximum Profit = 40x + 50y

x + 2y ≤ 40
4x + 3y ≤ 120
x, y ≥ 0

Objective function:
Constraints: