ABC Furniture Company produces sofas, tables and chairs at its Greensboro, North Carolina plant.The plant uses three
Question:
ABC Furniture Company produces sofas, tables and chairs at its Greensboro, North Carolina plant. The plant uses three main resources to make furniture: wood, upholstery and labor. The resource requirements for each piece of furniture and the total resources available weekly are as follows:
Resource requirements | |||
furniture product | Madera (lb) | Upholstery (yards) | Labor (hour) |
Sofa | 6 | 10 | 5 |
Mesa | 5 | 0 | 3 |
Silla | 4 | 3 | 1 |
Total available resources | 2200 | 1100 | 1000 |
Furniture is produced weekly and stored in a warehouse until the end of the week when it is shipped, however, the warehouse has limited capacity to store furniture. The warehouse can hold 600 pieces of table or chair, or 200 pieces of sofa (That is, a sofa takes up three times the space of a table or chair). Each sofa earns $400 in profit, each table $290, and each chair $180.
The company wants to know how many pieces of each type of furniture to make per week to maximize profits. Use Solver in Excel to find these values.
Operations Management Creating Value Along the Supply Chain
ISBN: 978-0470525906
7th Edition
Authors: Roberta S. Russell, Bernard W. Taylor