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

Explain what the hr systems might look for at wal-mart, o Compare what the ...

o Compare what the HR systems might look for at Wal-Mart, a new web startup company, and a law firm. How would you achieve a sustainable competitive advantage through HRM systems i

Find out what is e, Two large, thin metal plates are parallel and close to ...

Two large, thin metal plates are parallel and close to each other. On their inner faces, the plates have surface charge densities of opposite signs and of magnitude 17.0 × 10 22 C

Explain what you anticipate managing from a transition, What you anticipate...

What you anticipate 'managing" from a transition perspective to comply with this law

Line balancing, What do you understand by “line balancing”? What happens if...

What do you understand by “line balancing”? What happens if balance doesn’t exist

What are the ways in which corporations can demonstrate, What are three way...

What are three ways in which corporations can demonstrate a sense of social responsibility?

Explain important part of strategic training, Why is evaluating training an...

Why is evaluating training an important part of strategic training?

Explain well-designed teams tend to sabotage leaders, When it comes to how ...

When it comes to how a team is designed (i.e., members, communication, goals, norms, etc.) and team leadership, which of the following statements is most true based upon the studie

Capacity implication, how can make a plan for appropriate capacity of a cin...

how can make a plan for appropriate capacity of a cinema by replacing amount of standard seats with luxury seats?

Distinguish among a general benefit and a specific benefit, Distinguish bet...

Distinguish between a general benefit and a specific benefit. Why do customers respond positively to specific benefits?

Process configurations - products, Process configurations - products ...

Process configurations - products The categorisation of production systems according to volume of output was discussed: project, job shop, batch and continuous. The Hayes and

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