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?
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?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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