Cobonque Furniture Enterprises is a known maker of fine hand-crafted furniture in Davao del Sur. During the next production period, management is considering producing dining room tables, dining room chairs, and/or bookcases. The time required for each item to go through the two stages of production (assembly and finishing), the amount of wood required (fine cherry wood), and the corresponding unit profits are given in the following table, along with the amount of each resource available in the upcoming production period. Assembly (minutes) Finishing (minutes) Wood (pounds) Unit Profit d Tables b. 80 30 80 P360 Chairs 40 20 10 P125 Bookcases 50 30 50 P300 Available 8100 4500 1. Develop a linear programming model to determine the production levels that would maximize profit. 2. Taking the optimal solution obtained, prepare the corresponding sensitivity report and address the following: 9000 Suppose the profit per chair increases by 100. Will this change the optimal production quantities? Explain the change in total profit. Should the profit per table increase by 100 will this change the optimal production quantities? What can be said about the change in total profit?

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Cobonque Furniture Enterprises is a known maker of fine hand-crafted furniture in Davao del Sur. During the next
production period, management is considering producing dining room tables, dining room chairs, and/or bookcases.
The time required for each item to go through the two stages of production (assembly and finishing), the amount of
wood required (fine cherry wood), and the corresponding unit profits are given in the following table, along with the
amount of each resource available in the upcoming production period.
Assembly (minutes)
Finishing (minutes)
Wood (pounds)
Unit Profit
a.
Tables
b.
80
30
80
P360
Chairs
40
20
10
P125
Bookcases
50
30
50
P300
Available
8100
4500
1. Develop a linear programming model to determine the production levels that would maximize profit.
2. Taking the optimal solution obtained, prepare the corresponding sensitivity report and address the following:
9000
Suppose the profit per chair increases by 100. Will this change the optimal production quantities?
Explain the change in total profit.
Should the profit per table increase by 100 will this change the optimal production quantities? What
can be said about the change in total profit?
Transcribed Image Text:Cobonque Furniture Enterprises is a known maker of fine hand-crafted furniture in Davao del Sur. During the next production period, management is considering producing dining room tables, dining room chairs, and/or bookcases. The time required for each item to go through the two stages of production (assembly and finishing), the amount of wood required (fine cherry wood), and the corresponding unit profits are given in the following table, along with the amount of each resource available in the upcoming production period. Assembly (minutes) Finishing (minutes) Wood (pounds) Unit Profit a. Tables b. 80 30 80 P360 Chairs 40 20 10 P125 Bookcases 50 30 50 P300 Available 8100 4500 1. Develop a linear programming model to determine the production levels that would maximize profit. 2. Taking the optimal solution obtained, prepare the corresponding sensitivity report and address the following: 9000 Suppose the profit per chair increases by 100. Will this change the optimal production quantities? Explain the change in total profit. Should the profit per table increase by 100 will this change the optimal production quantities? What can be said about the change in total profit?
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