Drawer filing cabinets from solid oak for major corporations

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Reference no: EM132233746

Office2000 produces expensive, quality 2-drawer and 4-drawer filing cabinets from solid oak for major corporations. A 2-drawer model utilizes 2 labor hours to produce and package for a net profit of $75. The 4-drawer model utilizes 3 labor hours to produce and package, and nets a profit of $125. Each month Office2000 has 360 labor hours available and can obtain up to 200 2-drawer frames, 200 4-drawer frames, and 400 drawers from its oak supplier.

1. What are the decision variables?

2. Formulate a linear programming model from the manufacture of filing cabinets at Office2000. Show the profit equation (in mathematical model form, not as an Excel function)

3. State the constraints for the problem (in mathematical model form)

4. Are all the labor hours used up?

5. How many 2-drawer frames and 4-drawer frames were used?

6. What is the company profit?

7. To what value can the company increase the profit from the 4-drawer filing cabinets without having to resolve the problem?

8. In computing the profit contribution per unit, management reassessed their labor and supplier resources. Suppose that both labor and supplier resources can be added, prioritize your choices and give your reasons.

Notes: You also need to know how to read and interpret results from both Answer Report and Sensitivity Report.

Reference no: EM132233746

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