ECO-FRIENDLY - Essay Example

75% and remaining 25% remains unutilized. Because, the testing facility is not fully utilized, therefore, the fitting machine time can be increased, to produce more of higher power bulbs as it would lead to more profit, without increasing any other resource. Linear programming was used to model the problem. The decision variables x1 and x2 i.e. number of two kinds of light bulbs was used to formulate the profit function as well as the constraints of production for the two kinds of eco-friendly industrial light bulbs.

The profit function was solved for maximum profit under the constraints of the production. It was found out that for maximum profit the company should manufacture 900 bulbs of very low energy and 600 bulbs with higher energy. This resulted in a total profit of 8700p, which is the maximum profit that can be produced from the given resources by their optimum utilization. This optimum solution of the problem, consumes all of the shells supplied as well as the entire assembly time. However, the testing time was utilized only up to 75% of its capacity.

This is simply because; testing takes less time than assembly. Thus, there is unutilized testing facility. To utilize it fully, the fitting machines availability should be increased to produce more of higher energy bulbs as it would lead to more profit, without any additional resource other than increasing fitting machines availability. There are some options the company can look forward for increasing resources. One option can be to increase the availability of the fitting machine as well as that of the testing machine by 25% i.e. twelve and a half hour per day.

In this case the company can produce as many as 1500 higher energy bulbs and increase the profit to as high as 10500 p. This amounts to ~22.1% increase in profit over what can be achieved by the present resources. But this will depend upon how costly it is to increase