A manufacturer can sell product 1 at a profit of $2/unitand product 2 at a profit of $5/unit. Three units of rawmaterial are needed to manufacture 1 unit of product 1, and6 units of raw material are needed to manufacture 1 unit ofproduct 2. A total of 120 units of raw material are available.If any of product 1 is produced, a setup cost of $10 isincurred, and if any of product 2 is produced, a setup costof $20 is incurred. Formulate an IP to maximize profits.

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Optimization Models

Optimization models are mathematical models that help organizations determine the best way to allocate scarce resources to achieve specific objectives. These models can be used to solve a wide variety of problems, from finding the most efficient route for a delivery truck to determining the optimal mix of products to stock in a store.