QUESTION 3 A furniture company produces tables and chairs. The production process for each product is...
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QUESTION 3 A furniture company produces tables and chairs. The production process for each product is similar in that both require a certain number of labor hours that include carpentry work and painting. Each table takes 6 hours of labor to produce and each chair requires 4 hours of labor. During the current production month, 4,200 hours of labor is available. Each table sold yields a profit of Rp75,000 while each chair sold yields a profit of Rp50,000. To produce a table, it needs 3 meters of woods while for a chair, it needs 2 meters of woods. Tables take up three times as much storage space as chairs and there is room for at most 70 tables each month. The demand for table in the current month is forecasted to be 85 units and 100 units for chair. In order to optimize the company's operations, the company has developed goals that have been sorted based on priorities as follows: 1. Eliminate underutilize production capacity. 2. Management has established a satisfactory profit level of Rp13,000,000 per month. 3. Limit the overtime to 1,600 hours per month, which would erode profit levels. 4. Limit the usage of woods to 480 meters per month. 5. The company would like to use as much of the available storage space as possible. 6. Fulfil the demand for the products in order of magnitude of their profits. Formulate a goal programming model to determine how many tables and chairs that should be produced to achieve the goals! QUESTION 3 A furniture company produces tables and chairs. The production process for each product is similar in that both require a certain number of labor hours that include carpentry work and painting. Each table takes 6 hours of labor to produce and each chair requires 4 hours of labor. During the current production month, 4,200 hours of labor is available. Each table sold yields a profit of Rp75,000 while each chair sold yields a profit of Rp50,000. To produce a table, it needs 3 meters of woods while for a chair, it needs 2 meters of woods. Tables take up three times as much storage space as chairs and there is room for at most 70 tables each month. The demand for table in the current month is forecasted to be 85 units and 100 units for chair. In order to optimize the company's operations, the company has developed goals that have been sorted based on priorities as follows: 1. Eliminate underutilize production capacity. 2. Management has established a satisfactory profit level of Rp13,000,000 per month. 3. Limit the overtime to 1,600 hours per month, which would erode profit levels. 4. Limit the usage of woods to 480 meters per month. 5. The company would like to use as much of the available storage space as possible. 6. Fulfil the demand for the products in order of magnitude of their profits. Formulate a goal programming model to determine how many tables and chairs that should be produced to achieve the goals!
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Managerial Decision Modeling With Spreadsheets
ISBN: 9780136115830
3rd Edition
Authors: Nagraj Balakrishnan, Barry Render, Jr. Ralph M. Stair
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