Westport Furniture produces a line of furniture that replicates some classic designs from the late 1800s. Currently the company makes a rocking chair, formal dining tables and armoires. A production plan for the next week is being formulated. The company has no problem selling everything in this line that it makes. Furniture goes through two production stages – cutting/assembly and finishing. The wood used is a fine grade of cherry and its supply is limited. The table below gives the resources required for each item and the availability of each resource over the next week. Rocking Chair Dining table Armoire Cutting/Assembly (minutes) 100 180 120 Finishing (minutes) 60 80 80 Wood (Kg) 30 180 120 Unit profit $240 $720 $600 Over the next week the company has available 3600 minutes of cutting/assembly time, 2000 minutes of finishing time and 4000 Kg of wood.

a) Formulate the problem as a linear program. Clearly define your decision variables as a first step.

b) Enter the problem in Excel and use Solver to get the optimal solution. Include both the answer report and sensitivity report with your submission (well labeled).

c) What is the optimal profit represented by the objective function and what is the optimal production plan?

d) What are the binding constraints?

e) The company owner has promised his mother a rocking chair. What will the new profit be if tis promise is honoured?

f) The selling price of tables has suddenly decreased by $110 dollars (nothing else has changed). What will be the effect on the optimal solution?

f) An additional 100 minutes of finishing time can be purchased for an amount that is $2 above what it currently costs? Should the extra time be bought and if so, what will be the effect upon the optimal solution?

g) A fire in the wood warehouse has reduced the amount of wood by 500 Kg. What will be the effect upon the optimal solution?

Answer rating: 100% (QA)

a The decision variables in the problem are the number of rocking chairs dining tables and armoires ... View the full answer