Reference no: EM132699056
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 either pine, oak or cherry. Their chairs use 16 board feet of each types of wood. Furnco can purchase pine for $0.25/ board foot, oak for $0.80 / board foot and cherry for $2.50 / board foot and their budget allows them to spend up to $87,564 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 100 125 150
Chair 60 80 90
Total maximum demands for tables and chairs (all wood types combined) converted to a weekly basis are 200tables 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. (both variables and the optimal objective function value)
(b) does Furnco fill the entire weekly demand for tables? (justify your answer)
(c) Specify the shadow price for an addition dollar in Furnco's Wood Budget and interpret what it means.
(D) Would the optimal corner point change, if the profit an oak Chair increases from$80 to $90? (Justify your answer)
(e) Calculate the revised maximum profit, if Furnco's maximum weekly Table Demand decrease from 200 to 180 tables?
(f) Calculate the revised maximum profit, if Furnco's available weekly Budget increases from $87,564 to $ 1000,000