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

Various levels of customer service in your organization, Has the philosophy...

Has the philosophy that there are different levels of customers had any material effect on the value of your organization's customer service? • Identify and explain the differen

Explain the government affected by the bp oil spill sin usa, How was the go...

How was the government affected by the bp oil spill sin usa

Explain what is the efficiency, Normal 0 false false false ...

Normal 0 false false false EN-IN X-NONE X-NONE

Explain project management best practice, Give five potential underlying re...

Give five potential underlying reasons why projects commonly fail. For each potential failure point that you name, identify at least one project management best practice or techniq

Sceduling for the short term, what are the advantage to finite capacity sch...

what are the advantage to finite capacity scheduling ?

Explain same day delivery manufacturing process, Describe FedEx Office and ...

Describe FedEx Office and Same Day delivery manufacturing process and scheduling approach

Organizational change which starbucks implemented in 2008, I need a two par...

I need a two paragraph (one page) paper on the organizational change that Starbucks implemented in 2008

Explain employer disciplinary actions, Identify how the issues of due proce...

Identify how the issues of due process and just cause are linked to employer disciplinary actions

Want help double-checking my homework, Summer Tyme, Inc., is considering a ...

Summer Tyme, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $3.9 million. The fixed asset will be depreciated straight-l

Explain the ordering of the purchasing department, Q. Explain the ordering ...

Q. Explain the ordering of the purchasing department? Ordering is the responsibilities of a purchasing department: a. Negotiating along with suppliers b. Placement of ord

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