9781118041581

Let’s apply this procedure to solve the computer company’s production

problem. Figure 17.1 plots the firm’s decision variables, S and E, on the hori-

zontal and vertical axes, respectively, and plots the three resource constraints

as straight lines. The area OABCD represents the “feasible region” of all possi-

ble combinations of the two computer models. For each resource, the constraint

line in the graph depicts model combinations that use up exactly the available

resource. Any point lying to the right of any of the resource constraint lines

represents quantities that the firm cannot produce. For example, if the point

lies to the right of the DVD constraint, it represents an output combination

that requires more than 200 DVD drives. Any point to the left of this line

requires fewer than 200 drives. In turn, the equation 80S 40E 20,000

describes the binding hard-disk constraint and appears on the graph as the

712 Chapter 17 Linear Programming

600

500

300

400

200

100

0

Economy Models

0 100 200 300 400 500

Standard Models

Hard disk DVD drive

B"A D'

B

A'

C

D

B'

Labor

FIGURE 17.1

Production Constraints

for a PC Manufacturer

The feasible

combinations of

standard and economy

model PCs lie within

the region OABCD.

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