QUANTITATIVE METHODS FOR BUSINESS

CASE SOLVING

Read the instructions below and then solve for the answer/s of the respective questions being asked for. (50 Marks)

All the companies want to determine the best combination of their products which they are producing to reach the maximum profit. The companies also face some constraints (in term of time and resources) to find the diversey paint which is the least costly combination of production that would meet maximum level of profit. Choose any company randomly by your choice and sovle the following points for that choosen company.

1. Write the decision variables for that company. (4 Marks)
2. Formulate the linear program for that company. (4Marks)
3. Solve the problem using graphic method (20 Marks)
4. Find the best combination of production through algabric method which gives the highest profit to the company. (20 Marks)
5. Give your recommendation in order to minimize the cost of advertising strategy. (2 Marks)

Attention: Choose any company randomly by your choice and solve the following points for that choosen company.

Flair Furniture Company The company wants to determine the best combination of tables and chairs to produce to reach the maximum profit HOURS REQUIRED TO PRODUCE 1 UNIT (T) TABLES CHAIRS AVAILABLE HOURS THIS WEEK 240 DEPARTMENT Carpentry Painting and varnishing Profit per unit 100 $70 $50 Table 7.2 Flair Furniture Company The company wants to determine the best combination of tables and chairs to produce to reach the maximum profit HOURS REQUIRED TO PRODUCE 1 UNIT (T) TABLES CHAIRS AVAILABLE HOURS THIS WEEK 240 DEPARTMENT Carpentry Painting and varnishing Profit per unit 100 $70 $50 Table 7.2