# Problem: A company manufactures two products A and B. These are machined on machines I and II. A takes one hour on machine I and one hour on Machine II. Similarly, product B takes 4 hours on Machine I and 2 hours on Machine II.

Problem: A company manufactures two products A and B. These are machined on machines I and II. A takes one hour on machine I and one hour on Machine II. Similarly, product B takes 4 hours on Machine I and 2 hours on Machine II. Machine I and II have 8 hours and 4 hours as idle capacity. The planning manager wants to avail the idle time to manufacture A and B. The profit contribution of A is \$3 per unit and that of B is \$9 per unit.
A.    What are the decision variable of this problem? .
B.    Write the objective function of this problem.
C.    What are the constraint of the problem; Write them?
D.   Write completed linear programming model for the Problem .
1.     Abraham Blanket Factory is in a dilemma whether to expand the present plant, build new plant or subcontract with other companies for further production. The objective of the factory is to choose among the three alternatives that would provide the maximum profit giving the uncertainty concerning the demand for the products. Given the following payoff table for Abraham Blanket Factory (profit in million \$).
Decision Alternatives state of nature
Strong DD (S1) Weak DD (S2)
Expansion 10 4
New plant 15 7
Subcontracting 20 3
Instruction: Answer the following question based on the above information given

Calculate which alternative will be chosen using the Maxi-Max decision criteria .

Compute which alternative will be chosen if the above given payoff table were costs using Maxi-Min decision criteria
Determine which alternative will be chosen using Mini-Max regret decision criteria .

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