Question: QUESTION ONE ( COMPULSORY ) A small construction firm based in Kitwe specializes in building and selling single - family homes. The firm offers two

QUESTION ONE (COMPULSORY)
A small construction firm based in Kitwe specializes in building and selling single-family homes. The firm offers two basic types of houses, model A and model B. Model A houses require 4,000 labour hours, 2 tons of stone, and 2,000 board feet of lumber. Model B houses require 10,000 labor hours, 3 tons of stone, and 2,000 board feet of lumber. Due to long lead times for ordering supplies and the scarcity of skilled and semiskilled workers in the area, the firm will be forced to rely on its present resources for the upcoming building season. It has 400,000 hours of labor, 150 tons of stone and 200,000 board feet of lumber.
i Using the simplex method, what mix of model A and B houses should the firm construct if model As yield a profit of $1,000 per unit and model Bs yield $2,000 per unit? Assume that the firm will be able to sell all the units it builds. [15 Marks]
ii Which resources are not completely used by this firm? How much of each resource is unused? [3 Marks]
iii Determine the ranges of optimality for the objective function coefficients [4 Marks]
iv Write the dual solutions to the problem

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