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The B. J. Jensen Company specializes in the production of power saws and power drills for home use. Sales are rela- tively stable throughout the year except for a jump upward dur- ing the Christmas season. Since the production work requires considerable work and experience, the company maintains a stable employment level and then uses overtime to increase pro- duction in November. The workers also welcome this opportu- nity to earn extra money for the holidays. B. J. Jensen, Jr., the current president of the company, is overseeing the production plans being made for the upcoming November. He has obtained the data at the top of the next page. However, Mr. Jensen now has learned that, in addition to the limited number of labor hours available, two other factors will limit the production levels that can be achieved this Novem- ber. One is that the company’s vendor for power supply units will only be able to provide 10,000 of these units for Novem- ber (2,000 more than his usual monthly shipment). Each power saw and each power drill requires one of these units. Second, the vendor who supplies a key part for the gear assemblies will only be able to provide 15,000 for November (4,000 more than for other months). Each power saw requires two of these parts and each power drill requires one. Mr. Jensen now wants to determine how many power saws and how many power drills to produce in November to maxi- mize the company’s total profit. a. E* b. Draw the profit graph for each of these two products. Use separable programming to formulate a lin- ear programming model on a spreadsheet for this problem. Then solve the model. What does this say about how many power saws and how many power drills to produce in November? (Introduction to management science, 5th edition. Chapter 8, problem 10 for the chart)
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