
This is an exam question I was practising. I have the general understanding of Linear programming, but how would you go about finding the Decision Variables, Objective function and Constraints for this?
My Opinions: Decision variables:
$M_1$- # of Model 1 to be produced
$M_2$ and $M_3$ (similar definition to $M_1$)
Objective function: I'd Multiple the Cost to make in house by cost to buy from subcontractor
to get Minimise: $3900M_1+7500M_2+27300M_3$
Constraints:
$3M_1+1.5M_2+2M_3 \geq 0$
$1.25M_1+2.5M_2+0.75M_3 \geq 0$
$M_1,M_2,M_3 \geq 0$
No idea where number order would go? Do I use it in the Constraints and multiply by the Hours?
Now, am I on the right track?