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A Computers is a small manufacturer of personal computers. It concentrates production on three models, a desktop 386, a desktop 286, and a laptop 486…

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A Computers is a small manufacturer of personal computers. It concentrates production on three models, a desktop 386, a desktop 286, and a laptop 486…

2. J.A Computers is a small manufacturer of personal computers. It concentrates production on three models, a desktop 386, a desktop 286, and a laptop 486 each containing one CPU chip. Due to its limited assembly facilities J.A Computers are unable to produce more than 500 desktop model or more than 250 laptop models per month. It has one hundred and twenty 80386 chips (these are used in desktop-386) and four hundred 80286 chips (used in desktop, 286 models requires four hours of production time, and the laptop 486 requires three hours of production time. J.A Computers have 2000 hours of production time available for the coming month. The company estimates that the cost on a desktop 386 is sh. 5000 for a desktop 286 the cost is Sh. 3400and Sh.3000 cost for a laptop 486. Required:-

Formulate this problem as a cost minimization problem. Obtain the dual program and determine the optimal product mix to minimize the cost involved using Simplex method (20marks)

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