ABSTRACT
Example 7.1 Assume that a firm uses three raw materials denoted by R1,R2 and R3 to produce four intermediate productsS1, S2, S3 andS4. These intermediate products are partially also used to produce two final products F1 and F2. The numbers of required units of the intermediate products are independent of the use of intermediate products as input for the two final products. Table 7.1 gives the number of units of each raw material which are required for the production of one unit of each of the intermediate products. Table 7.2 gives the number of units of each intermediate product necessary to produce one unit of each of the final products. The firm intends to produce 80 units of S1, 60 units of S2, 100 units of S3 and 50 units of S4 as well as 70 units of F1 and 120 units of F2. The question is: how many units of the raw materials are necessary to produce the required numbers of the intermediate and final products?
