The Linear Programming Problem (Maximization) - Math 423 Linear Optimization -
Chadwick
(1) Manufacturing Example. An electric vehicle startup, Faraday, manufactures two
models of sedans, the Sport package Model A and the Standard package Model B.
The Model A sells for $50, 000 and uses $12, 000 of materials. Each model A
manufactured requires $5000 of labor and overhead costs. A Model B sells for
$40, 000 and uses $8000 of materials. Each model B built requires $4000 of labor
and overhead costs.
The Model A requires 150 person-hours of labor for assembly, 50 person-hours for
painting and finishing, and 20 person-hours for checking out and testing. A Model
B needs 60, 40, and 10 person-hours, respectively, for the three tasks. During each
production run, there are at most 30,000 person-hours available in the assembly
shops, 13,000 in the painting and finishing shops, and 5000 in the checking and
testing division.
The demand for the Standard package model B is unlimited, but at most 100 of
the Sport package Model A will be sold.
How many of each model should be scheduled for each production run in order to
realize the greatest potential profit? We will formulate the linear programming
problem that addresses this question.