Formulation of the L.P model:
Let the number of units of products X,Y and Z produced be x1,x2,xz where
xz=number of units of Z produced.
=number of units of Z sold+number of units of Z destroyed.
=x3+x4(say)
Objective is to maximize the profit.Objective function(profit function) for productsX and Y is linear because their profits (Rs.10 per unit and Rs.20 per unit) are constants irrespective of the number of units produced.A graph between the total profit and quantity produced will be a straight line.However, a similar graph for product Z is non-linear since it has slope +6 for first part,while a slope of −4 for the second.However,it is piecewise linear,since it is linear in the regions0 to 5 and 5 to 2Y.Thus,splitting xz in to two parts,viz.the number of units of Z sold (x3) and number of units of Z destroyed (x4) makes the objective function for product Z also linear.
Thus, the objective function is
maximize Z=10x1+20x2+6x3−4x4.
Constraints are
on the time available on operationI:3x1+4x2≤20
on the time available on operationII:4x1+5x2≤26
on the number of units of product Z sold:x3≤5
on the number of units of product Z produced:2Y=Z
or 2x2=x3+x4 or −2x2+x3+x4=0,
where x1,x2,x3,x4, each≥0