HEAVY, Inc

Essay

HEAVY, Inc. produces two lines of heavy equipment, earthmoving and forestry. The largest member of the earthmoving equipment line (the E-7) and the largest member of the forestry equipment line (the F-7) are produced in the same departments and with the same equipment. HEAVY's marketing manager has judged that the firm will be able to sell as many E-7s or F-7s as the firm can produce. The contribution margins are $15,000 for each E-7 and $14,000 for each F-7. There are 170 hours available in department A and 185 hours available in department B. Each E-7 produced uses 10 hours in department A and 20 hours in department B. Each F-7 uses 15 hours in department A and 10 hours in department B. Furthermore, in order to maintain the current market position, senior management has decreed that it is necessary to build at least one F-7 for every three E-7s produced. Finally, a major dealer has ordered a total of at least five E-7s and F-7s (in any combination) for next month, so at least that many must be produced. Formulate a Linear Program to determine the best production policy for next month.