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Blue Ridge Hot Tubs manufactures and sells two models of hot
Transcript of Blue Ridge Hot Tubs manufactures and sells two models of hot
Blue Ridge Hot Tubs manufactures and sells two models of hot tubs: the Aqua-Spa and the Hydro-Lux. Howie Jones, the owner and manager of the company, needs to decide how many of each type of hot tub to produce during his next production cycle.
Howie buys hot tub shells from a local supplier and adds the pump and tubing to the shells to create his hot tubs. Howie installs the same type of pump into both hot tubs. He will have only 200 pumps available during his next production cycle. The main difference between the two models of hot tubs is the amount of tubing and labor required.
Each Aqua-Spa requires 9 hours of labor and 12 feet of tubing. Each Hydro-Lux requires 6 hours of labor and 16 feet of tubing. Howie expects to have 1,566 production labor hours and 2,880 feet of tubing available during the next production cycle. Howie earns a profit of $350 on each Aqua-Spa he sells and $300 on each Hydro-Lux he sells.
He is confident that he can sell all the hot tubs he produces. The question is, how many Aqua-Spa and Hydro-Lux should Howie produce if he wants to maximize his profits during the next production cycle?
Pumps 1 1
Labor 9 hours 6 hours
Tubing 12 feet 16 feet
Unit Profit $350 $300
There are 200 pumps, 1566 hours of labor, and 2880 feet of tubing available.
Blue Ridge Hot Tubs produces two types of hot tubs: Aqua-Spas & Hydro-Luxes.
Home Work #1 : LP Problem
1. Understand the problem.
2. Identify the decision variables.
3. State the objective function as a linear combination of the decision variables.
5 Steps In Formulating LP Models
4. State the constraints as linear combinations of the decision variables.
5. Identify any upper or lower bounds on the decision variables.