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Two models of color TV sets designated Alpha and Beta are produced by Allison Company. The profit on Alpha is $300 and the profit on Beta is $250. There are 40 hours of labor each day in the production department and 45 hours of machine time available each day.
The company can sell as many sets of model Beta as it can make, but it cannot sell more than 12 sets of Alpha. Each unit of the Alpha model requires two hours of labor and 1 hour of machine time. The Beta model requires 1 hour of labor and three hours of machine time.
Harrison Electric Company produces two products popular with home renovators: old-fashion chandeliers and ceiling fans.
Both the chandeliers and fans require a two-step production process involving wiring and assembly. It takes about 2 hours to wire each chandelier, and 3 hours to wire a ceiling fan. Final assembly of the chandeliers and fans requires 6 and 5 hours respectively.
The production capability is such that only 12 hours of wiring time and 30 hours of assembly time are available each day. If each chandelier nets the firm $7 and each fan $6, formulate a production mix decision LP.
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