Develop an appropriate linear optimization model to maximize net profit and solve it using SOLVER The objective is to maximise profit but no revenue information, or profit information is provided. The...

1. The objective is to maximise profit but no revenue information, or profit information is provided.


2. The question does not provide quantities of material available.

The expectations with respect to each issue are as follows:

1. We know Profit = Income - Cost, and income = price * quantity. Therefore make market assumptions on the variables whose information is not available, and optimise those that information is available. In this case you have all the cost information. You need to ask yourselves, what is best for you with respect to total costs? This should then inform the objective in the LP.


2. No material information is provided. The assumption has to pertain to the availability of it as you will always be able to pass the cost to the market anyway. Remember there is a stringent condition that minimum demand should be met at ALL times. Therefore you already have a minimum and maximum bound with respect to material. This is sufficient to create the necessary material constraints for the LP.