The following data is for a company that produces washers and dryers.

 

• Dryers retail for $198 and contribute $15 to profit.

• Washers retail for $499.95 and contribute $45 for profit.

• The washer blade is limited in production capacity to 50 blades, while all other

components have no limits.

• Chassis assembly requires 6 person-hours for each dryer set and 18 personhours

for each washer. The plant employs 225 workers for an 8-hour shift to

perform chassis assembly operations.

• A dryer requires 1 person-hour on the assembly line, a washer set

1.6 person-hours. There are 30 people on a single 8-hour shift assigned to

assembly.

• Final inspection requires 0.5 person-hour for a dryer and 2.0 person-hours for

washer. The plant employs 20 full-time inspectors and one part-time employee

for 2 hours per day.

a. Write a linear programming model.

b. What is the optimum number of dryers and washers?

c. Calculate the maximum profit.

d. The linear programming and break-even approaches are used to find the

selling price for both the dryer and washer, based on $10,000 fixed cost

for both dryer and washer with a variable cost of $160 for the dryer and

$330 for the washer. Determine how many days will be required until the

company starts making a profit for the washers and the dryers. Use $198

and $500 as selling prices for the dryer and the washer, respectively.

 

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