How to allocate workforce in order to maximize revenue


G and P Manufacturing would like to minimize the labor cost of producing dishwasher motors for a major appliance manufacturer. Although two models of motors exist, the finished models are indistinguishable from one another; their cost difference is due to a different production sequence. The time in hours required for each model in each production area is tabled below along with the labor cost.

Model 1 Model 2
Area A 15 6
Area B 4 8
Area C 4 8
Revenue 90 65

Currently labor assignments provide for 10,000 hours in each of Areas A and B and 18000 hours in Area C. In addition, it is possible to transfer 2000 hours from area B to Area A. Similarly, 3000 hours may be transferred from area C to either Areas A or B. Develop the linear programming model to indicate how many of each model should be produced and how to allocate the workforce in order to maximize revenue.

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Basic Statistics: How to allocate workforce in order to maximize revenue
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