A Company Producing a Standard Line and a Deluxe Line

question 81

Essay

A company producing a standard line and a deluxe line of dishwashers has the following time requirements (in minutes) in departments where either model can be processed.
$$\begin{array} { | l | l | l | } \hline & \text { Standard } & { \text { Deluxe } } \\\hline \text { Stamping } & 3 & 6 \\\hline \text { Motor installation } & 10 & 10 \\\hline \text { Wiring } & 10 & 15 \\\hline\end{array}$$
The standard models contribute $20 each and the deluxe $30 each to profits. Because the company produces other items that share resources used to make the dishwashers, the stamping machine is available only 30 minutes per hour, on average. The motor installation production line has 60 minutes available each hour. There are two lines for wiring, so the time availability is 90 minutes per hour.
Let x = number of standard dishwashers produced per hour
y = number of deluxe dishwashers produced per hour
Write the formulation for this linear program.

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Definitions:

Output

The total quantity of goods or services produced by an individual, firm, or country over a specified period.

Government Deregulation

The process of reducing or eliminating government rules controlling how businesses can operate, often to encourage more competition and innovation.

Economies of Scale

Enterprises gain cost benefits from their scale of operation, which typically results in the cost per unit of output decreasing as the scale increases.

Economic Profit

The total revenue of a business minus its explicit and implicit costs.