Chapter Two Linear Programming: Basic Concepts
2.1 A CASE STUDY: THE WYNDOR GLASS CO. PRODUCT-MIX PROBLEM
Jim Baker is excited. The group he heads has really hit the jackpot this time. They have had some notable successes in the past, but he feels that this one will be really special. He can hardly wait for the reaction after his memorandum reaches top management. Jim has had an excellent track record during his seven years as manager of new product development for the Wyndor Glass Company. Although the company is a small one, it has been experiencing considerable growth largely because of the innovative new products developed by Jim’s group. Wyndor’s president, John Hill, has often acknowledged publicly the key role that Jim has played in the recent success of the company. Therefore, John felt considerable confidence six months ago in asking Jim’s group to develop the following new products: • An 8-foot glass door with aluminum framing. • A 4-foot 6-foot double-hung, wood-framed window. Although several other companies already had products meeting these specifications, John felt that Jim would be able to work his usual magic in introducing exciting new features that would establish new industry standards. Now, Jim can’t remove the smile from his face. They have done it.
Background
The Wyndor Glass Co. produces high-quality glass products, including windows and glass doors that feature handcrafting and the finest workmanship. Although the products are expensive, they fill a market niche by providing the highest quality available in the industry for the most discriminating buyers. The company has three plants. Plant 1 produces aluminum frames and hardware. Plant 2 produces wood frames. Plant 3 produces the glass and assembles the windows and doors. Because of declining sales for certain products, top management has decided to revamp the company’s product line. Unprofitable products are being discontinued, releasing production capacity to launch the two