Suppose x is the number of pieces of Model A and y is the number of pieces of Model B. Then
Total profit (in Rs) = 8000 x + 12000 y
Let Z = 8000 x + 12000 y
We now have the following mathematical model for the given problem.
Maximise Z = 8000 x + 12000 y ... (1)
subject to the constraints: 9x + 12y ≤ 180 (Fabricating constraint)
i.e. 3x + 4y ≤ 60 ... (2)
x + 3y ≤ 30 (Finishing constraint) ... (3)
x ≥ 0, y ≥ 0 (non-negative constraint) ... (4)
The feasible region (shaded) OABC determined by the linear inequalities (2) to (4) is shown in the below figure. Note that the feasible region is bounded.
Let us evaluate the objective function Z at each corner point as shown below:
We find that maximum value of Z is 1,68,000 at B (12, 6). Hence, the company should produce 12 pieces of Model A and 6 pieces of Model B to realise maximum profit and maximum profit then will be Rs 1,68,000.