Giapetto example
Giapetto's Woodcarving, Inc. manufactures two types of wooden toys:
soldiers and trains. A soldier sells for $27 and uses $10 worth of
raw materials. Each solder that is manufactures increases Giapetto's
variable labor and overhead costs by $14. A train sells for $21 and
uses $9 worth of raw materials. Each train built increases Giapetto's
variable labor and overhead costs by $10. The manufacture of wooden
soldiers and trains requires two types of skilled labor: carpentry and
finishing. A soldier requires 2 hours of finishing labor and 1 hours
of carpentry labor. A train requires 1 hour of finishing and 1 hour
of carpentry labor. Each week, Giapetto can obtain all the needed raw
material but only 100 finishing hours and 80 carpentry hours. Demand
for trains is unlimited, but at most 40 soldiers are bought each
week. Giapetto wants to maximize weekly profit (revenues - costs).
Formulate a mathematical model of Giapetto's situation that can be
used to maximize Giapetto's weekly profit.