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LP Model create a model for Apple Inc. that would maximize profits of the iPhone and the iPad and minimize production time to make them.

LP Model

create a model for Apple Inc. that would maximize profits of the iPhone and the iPad and minimize production time to make them. We identified the the following constraints:

Production

  • Facility can not exceed 350,000 workers
  • Time Constraint: Employees can not work more than 12 hours per day and production time can not exceed 7200 minutes

Profit

  • The iPhone makes a profit of $529 per unit
  • The iPad makes a profit of $123.90 per unit

Decision Variables

X1= iPhone

X2=iPad

iPhone sells for $1099

cost $570 to produce

500,000 iPhones are produced in a day

217 million iPhones produced in a year

It takes roughly 17 hours or 1020 minutes to make an iPhone.

iPad sells for $499

cost $375.10 to produce

300,000 iPads are produced a day

19.2 million iPads are produced a year

It takes roughly 5 days or 7200 minutes to make an iPad.

There are 350,000 workers per facility working 12-hour shifts at $1.90 an hour for iPad and $1.62

for iPhone.

325 workers to make an iPad and 4 people to make an iPhone.

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