A situation that is possible to model using the linear programming model is such as where a company produces two products, and there is the need for determining how many of each should be made so that the company can achieve maximum profit. For instance, a smartphone manufacturer can create two variants of the same phone, namely the following: one that has a 64GB memory chip and another that has a 128GB memory chip. The 64 GB version takes 5 minutes to assemble, and a profit of $500 is achieved on sales while the 128GB variant takes 10 minutes to assemble and has profits of $600 per sale. The company has 15,000 chips and 30,000 minutes for assembly of the smartphones each month. The linear program that can be sued to program the decision variables which are the number of each product to produce, the objective which is the maximum profits and the constraints which are the resources that are available for assembly and availability for the product.
Analysis and experimentation with a model offer the advantage of being accurate in representing reality and models having capabilities to give companies information and insights. These models can help save on time and money in decision making and problem-solving. Making use of a model helps solve complex problems and saves time. A model can analyze a problem through using logic and offers reduced risks for the company.
