1. Wildstone manufacturing company faces the following problem: Should they make or buy each of the 4 products? The company policies specify that they will either make or buy the entire lot of each product.

The company has 4 products to make or buy with 6 machines involved in making these products if they are made in the shop. The times per unit in hours required are as follows

Product Machine A Machine B Machine C Machine D Machine E Machine FDeos 3 2 5 3 4 6Talc 1 0 2 2 2 5Perfume 2 5 1 1 3 4Soap 6 3 4 5 6 7Hrs available on each m/c

100 90 110 80 60 80

The costs of making the products are listed belowProduct Cost to make in Rs.

per unitCost to buy Rs. per unit

Product Requirement

Deos 50 60 200Talc 40 45 300Perfume 100 125 250Soap 10 12 270

Formulate this problem as a zero one integer programming problem

Solution:

Let X1 be Product Deo in-houseX2 be Product Talc in-houseX3 be Product Perfume in-houseX4 be Product Soap in-houseX5 be Product Deo sub-contractX6 be Product Talc sub-contractX7 be Product Perfume sub-contractX8 be Product Soap sub-contract

Objective Function:

Min. Cost = (50 x 200) X1 + (50 x 200) X2 + (50 x 200) X1 + (50 x 200) X1 + (50 x 200) X1 + (50 x 200) X1 + (50 x 200) X1 + (50 x 200) X1