Numerical Model of LPP:-
Objective:- The main objective is long-run profit maximization and find optimal production Quantity (Mix).
The measure of effectiveness: The measure of effectiveness is profit obtained from each type of models so as to determine the optimal number of model of each type to be produced.
Controllable Variable
(a) The number of model of each type that should be manufactured.
(b) Should the firm spend on advertising, sales promotion etc.
Uncontrollable Variable
(a) Demand per month.
(b) Time machine consume.
I am considering two cases to meet my objective.
(a). Certain Environment: When our demand is certain (.et -For previous year data)
(b). Uncertain Environment: In real life, there may be a situation when some vagueness present in the data. The decision maker is not always certain about
the demand, time is taken by a machine during production. In this case, we take a demand is stochastic.
Here, we have 99%,95% and 90% confidence interval for the demand