Question 10

(1, if location j is selected Ij = 0, otherwise Required Explain briefly which of the constraints above enforces a contingent relationship? Q10. (15 points) A furniture manufacturer in Iron Bridge, Ontario has the capability to produce both chairs and tables. Both products use the same materials (wood, nails and paint) and both have a setup cost ($100 for chairs, $200 for tables). The firm earns a profit of $20 per chair and $65 per table and can sell as many of each as it can produce. The daily supply of wood, nails and paint is limited. To help manage the decision-making process, a summer BBA student from Algoma University has formulated the following linear programming model: Algebraic model Max 20x1 + 65x2 - 100y1 - 200y2 s.t. 5x1 + 10x2 $ 100 {Constraint 1} 20x1 + 50x2 2 250 {Constraint 2} 1x1 + 1.5x2 $ 10 {Constraint 3} My1 2 x1 {Constraint 4} My2 2 x2 {Constraint 5} [ 1, if product j is produced yi = 10, otherwise Required Set up the problem in Excel and find the optimal solution | Solver. What is the maximum profit possible