Find what is the maximum profit, Operation Management

Assignment Help:

The Outdoor Furniture Corporation manufactures two products, benches and picnic tables, for use in yards and parks. The firm has two main resources: labor and redwood. A linear program has been formulated to solve the problem of how many benches (defined as x1) and how many picnic tables (defined as x2) to produce in the next production cycle so as to obtain the largest possible profit. The printout below shows the optimal solution and sensitivity reports for this LP obtained from Excel/Solver.

Use the information from these printouts to answer questions below. Be sure to explain/justify your answers to receive full credit.

a). How many benches and how many picnic tables should be produced to maximize profit? What is the maximum profit? Explain/justify your response.

Note: Consider the changes indicated in parts b, c, and d independently.

b). Suppose that it is possible to increase the amount of labor available by 150 hours. By how much would this increase the total profit? Explain/justify your response.

c). If the profit for a bench increases to $10 per unit, what will the optimal value of x1 and x2 be? What will the objective function value be? Explain/justify your response.

d). The production manager has just learned that the supply of redwood is only 2400 feet for the next production cycle, due to some quality problems. What is the effect of this change? What will the new optimal solution and objective function value be? Explain/justify your response.


Related Discussions:- Find what is the maximum profit

Difference between production planning and control, Difference between prod...

Difference between production Planning and Control Many people are of the view that production planning embraces both planning and control. In the broader sense, production pla

Three requirements that met when designing jobs, 1. What are the three requ...

1. What are the three requirements which must simultaneously be met when designing jobs?   Answer: Technical, economic and behavioural feasibility.

Describe henry did tax work for joe electrician, Henry did tax work for Joe...

Henry did tax work for Joe electrician. Bill was $900, Hnery reduced it to $600. Joe did wrok for Henry at cost of $700. Henry gave Joe a check for $400, said remaining $300 was th

Explain features of canada''s labour relations system, Determine which feat...

Determine which features of Canada's labour relations system you would transfer to the U.S. if you could. Explain your rationale.

Basic ethical principles among business courtesy and a bribe, In applying b...

In applying basic ethical principles where should you draw the line between a legitimate business courtesy and a bribe? ?PS: Can flow the book of Ethics and the conduct of business

Explain hygiene factors, Explain Hygiene Factors. Hygiene Factors: Ma...

Explain Hygiene Factors. Hygiene Factors: Maslow's require Hierarchy Theory on Motivation has been modified through Fredrick Herzberg and his contacts. Their research purport

Explain bank is insisting on an improved profit picture, Company A finds pr...

Company A finds profit at $15,000 inadequate for expanding business. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Company

Compute the npv, Expando, Inc., is considering the possibility of building ...

Expando, Inc., is considering the possibility of building an additional factory that would produce a new addition to their product line. The company is currently considering two op

Explain what problems does diversity present, Individual diversity is an im...

Individual diversity is an important concept in organizational behaviour. People can be described by a number of categories that are both inherent (e.g., age, race, gender, ethnici

Increasing pace of change - service operations management, Increasing Pace ...

Increasing Pace of Change - Service Operations Management The establishment of service operations management. Total quality management (TQM) widely adopted, ISO 9000, theory o

Write Your Message!

Captcha
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!

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