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Essay Details:
Essay text:
To generate an attainable goal I will use a linear programming model in order to represent the company's goal, the factors involved, and the limitations put on the process by the constraints.
Linear Programming Model:
The current production level of the company consists of producing and selling 400 units of Model S and 1400 units of Model LX, on a per month basis. The costs incurred for the production of Model S is $1839/unit, but the model is only sold for $1800/unit, which holds a contribution margin of negative $39. The company must decide on the possibility of reducing production for this model, or an alternative to maximize their goal...
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