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Linear programming

Example 1

Irwin manufactures two different types of computer with the following details:

Computer Computer
X Y
Selling price per unit $800 $1,200
Component costs per unit $150 $310
Assembly time (in minutes per unit) 80 130
Testing time (in minutes per unit) 120 180
Packaging time (in minutes per unit) 60 30
Maximum demand (units) 300 800
It expects assembly time to be limited to 1,000 hours and testing time to be
limited to 875 hours.

The following costs are derived from Irwin’s budgets to 31st December:

Assembly $180/hour

Testing $60/hour

Packaging $20/hour

Define the variables for a linear programming solution for Irwin’s
production constraints.

Solution

Let x = each unit of Computer X produced

Let y = each unit of Computer Y produced

Let C = the contribution to be maximised

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