The PRODMIXWB.xls Model

Product Mix with Setup Costs

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In product mix problems, the objective is to find the most profitable allocation of a set of limited resources over a set of desired products or activities. Virtually every manufacturer faces this situation in some form or other.

This example involves the conversion of raw materials into manufactured goods. An agricultural example might involve the use of land, seed, water, labor, and fertilizer so as to maximize farm output. Product mixing problems often serve as the building blocks for more complex applications.

Objective of Optimization:
The objective of optimization is to maximize the profits that can be realized from manufacturing products using only the current inventory of raw materials.


Production | Inventory | Product Management | Product Mix | Break Even Point | Sales | Transaction Costs |