User Account

All Pages

Calculate furnco revised maximum profit

Assignment Help Operation Management
Reference no: EM132691486

Furnco makes handcrafted dining room tables and chairs. Each table and chair is made entirely out of either pine, oak or cherry. A Furnco table requires 180 board feet of pine, 160 board feet of oak or 150 board feet of cherry. Their chairs use 15 board feet of pine, 12 board feet of oak or 10 board feet of cherry. Furnco can purchase pine for $0.20 / board foot, oak for $0.60 / board foot and cherry for $1.50 / board foot and their budget allows them to spend up to $33,600 each week on wood to produce furniture. Profits for each item produced by Furnco are given in the table below:

Profit per Unit
Pine
Oak
Cherry
Table
100
150
180
Chair
50
75
90

Total maximum demands for tables and chairs (all wood types combined) converted to a weekly basis are 240 tables and 750 chairs.

Formulate a Linear Program to determine how many tables and chairs of each type Furnco should produce to maximize their weekly profit.

Solve the problem using Excel. (Use the solution to answer each question below.)

(a) Interpret the solution.

(b) What is the shadow price (labeled in appropriate units) for an additional unit of weekly chair demand at Furnco?

(c) Calculate Furnco's revised maximum profit if the company were forced to decrease their weekly budget by $10,000?

Reference no: EM132691486

Questions Cloud

Which investment category are fair values or subsequent : In which investment category are fair values or subsequent earnings of an investee not relevant for reporting? amortized cost securities
How corporations use new venture teams : How corporations use new venture teams, business incubators, and product champions to create an internal environment and culture that promote entrepreneurial
Describe the ethical theory of virtue : Describe the ethical theory of virtue and how is it applicable to managerial decision making.
Prepare cash flow statement for the year ended for Mabilis : Prepare cash flow statement (indirect method) for the year ended for Mabilis Delivery Services using the following: Depreciation expense - P70,000
Calculate furnco revised maximum profit : Furnco makes handcrafted dining room tables and chairs. Each table and chair is made entirely out of either pine, oak or cherry. A Furnco table requires
What was the advantage to jones of agreement with woolston : What is the advantage to a principal of an exclusive agency agreement? What was the advantage to Jones of his agreement with Woolston?
What the carrying value on january is : What The carrying value on January 2, 2019 is? The bond premium or discount is being amortized at a rate of $10,000 every six months.
Compute Jepson gross profit for October using each method : Jepson uses the periodic inventory system, Sales revenue for October totaled $26,000. Compute Jepson's gross profit for October using each method
Provide five specific balance-related audit objectives : Provide five specific balance-related audit objectives for the audit of NAS inventory that address the risks associated with NAS inventories described in case

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd