A manufacturing company consisting of two plants intends to introduce up to three new products. The production quantity of each product can be any number, integer or non-integer, but there is an upper limit on the amount of a product that can be sold per week. To avoid undue diversification of the company’s product line, management has imposed following restrictions:
Constraint (i): from the three possible new products, at most two should be chosen to be produced;
Constraint (ii): just one of the production plants should be chosen to produce new products. Given the data below, the objective is to choose the products, the plant and weekly production quantities of the chosen products so as to maximise the total profit.
I am having trouble understanding some things. I have the answer which I will post below.
I do the following
Now we have for $x_1, x_2, x_3$ for weekly production quantities of the corresponding products
max z = $5x_1 + 7x_2 + 3x_3$
Constraints give the following:
As production hours for each plant should not be exceeded:
$3x_1 +4x_2 + 2x_3 \leq 30$
$4x_1 + 6x_2 + 2x_3 \leq 40$
also we have:
$0 \leq x_1 \leq 7$, $0 \leq x_2 \leq 5$, $0 \leq x_3 \leq 9$
Now introduce $\delta_1 = 1$ if product 1 is produced, $0$ if not. And the same for $\delta_2 , \delta_3$ .
Where from constraint (i) we have: $\delta_1 + \delta_2 + \delta_3 \leq 2$
I don't understand why the following is necessary?
$x_1 \leq M\delta_1$, $x_2 \leq M\delta_2$, $x_3 \leq M\delta_3$
And I don't understand how to do constraint (ii)
Here is it step by step:
The end result should be:
Any help would be appreciated, I am having difficultly understanding the details of this notation. Also if this is better suited in another part of stack - apologies.