HA. 36. A company manufacturing dining room furniture plans to discontinue production of its line of...

Transcribed Image Text:

HA. 36. A company manufacturing dining room furniture plans to discontinue production of its line of sideboards as they are often not required by purchasers, and to concentrate on making chairs and tables. This decision will leave excess manpower capacity in the two major sections of the factory - Joinery and Polishing. Up till now the company has particular, there must be at least four chairs made for every table. Marketing advice now indicates that chairs in excess of 4 per table are often required and that spare chairs up to a total chair output or 300 per week could be sold. Sixty tables per week is thought to be the maximum output of tables which could be sold. The present cost structure is given in Table 2. The total overhead costs will remain fixed at P500 per week, although in Table 2 they are distributed to the products in proportion to labor costs. Fifteen men are employed in Joinery; ten in Polishing. All work a 40-hour week at P1.00 per hour. TABLE 2 Present Cost Structure for Example 2.6 Chairs Tables Per week Per unit P P, c Per Week P Sideboards Per unit Per week Per unit P.c P P.c Production 160 units 40 units 40 units Labor Joinery 240 1.50 2005.00 160 4.00 Polishing 160 1.00 802.00 160 4.00 Materials 640 4.00 3208.00 640 16.00 Overheads 200 1.25 1403.50 160 4.00 Total costs 1240 7.75 74018.50 1120 28.00 Revenue 1600 10.00 84021.00 1200 30.00 Profit 360 2.25 1002.50 80 2.00 Formulate the problem as one in linear programming HA. 36. A company manufacturing dining room furniture plans to discontinue production of its line of sideboards as they are often not required by purchasers, and to concentrate on making chairs and tables. This decision will leave excess manpower capacity in the two major sections of the factory - Joinery and Polishing. Up till now the company has particular, there must be at least four chairs made for every table. Marketing advice now indicates that chairs in excess of 4 per table are often required and that spare chairs up to a total chair output or 300 per week could be sold. Sixty tables per week is thought to be the maximum output of tables which could be sold. The present cost structure is given in Table 2. The total overhead costs will remain fixed at P500 per week, although in Table 2 they are distributed to the products in proportion to labor costs. Fifteen men are employed in Joinery; ten in Polishing. All work a 40-hour week at P1.00 per hour. TABLE 2 Present Cost Structure for Example 2.6 Chairs Tables Per week Per unit P P, c Per Week P Sideboards Per unit Per week Per unit P.c P P.c Production 160 units 40 units 40 units Labor Joinery 240 1.50 2005.00 160 4.00 Polishing 160 1.00 802.00 160 4.00 Materials 640 4.00 3208.00 640 16.00 Overheads 200 1.25 1403.50 160 4.00 Total costs 1240 7.75 74018.50 1120 28.00 Revenue 1600 10.00 84021.00 1200 30.00 Profit 360 2.25 1002.50 80 2.00 Formulate the problem as one in linear programming