Production planning department of Graystar Prefabricated Homes Company has to decide which types of homes to produce
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Question:
Production planning department of Graystar Prefabricated Homes Company has to decide which types of homes to produce for the next period. They have four prefabricated homes (A,B,C and D). Each home uses three different materials, lumber, particleboard and drywall. The table given below shows the expected profits for each house, the amount of materials used in house and the available quantities of these materials.
A | B | C | D | Available | |
Profit | 20,000 | 17,000 | 21,000 | 24,000 | |
Lumber | 10 | 7 | 11 | 10 | 25 |
Particle Board | 5 | 4 | 7 | 6 | 20 |
Drywall | 2 | 1.5 | 3 | 2.5 | 6 |
Formulate the problem, to determine which house(s) should be produced to maximize the profit.
Please explain in details with Excel screenshot.
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