TD Sdn Bhd is one of the largest manufacturers of furniture in Malaysia. The types of...

  

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TD Sdn Bhd is one of the largest manufacturers of furniture in Malaysia. The types of furniture being manufactured include chair, bench, and table, in which the manufacturing process involves two departments namely the tube-bending department as well as the welding department. The time required to manufacture each product in each department is depicted in the following table: Tube bending (hours) Welding (hours) Chair 1.8 Types of Furniture Bench 1.1 2.5 0.3 Table 1.5 3.4 Maximum capacity 1,100 1,300 The sale of a unit of chair earns TD Sdn Bhd a contribution of RM2.70, RM3.30 for a bench, and RM5.30 for a table. The firm is apparently planning its production mix for the Grand Sale event and it aims to maximize contribution. It is estimated that it can sell any number it manufactures. However, production is further limited by the availability of raw material. Apparently, the firm possesses 2,500 lbs. of metal tubing. The manufacturing process of the furniture requires the following amounts of this metal tubing: 2.5 lbs. per chair, 3.1 lbs. per bench, and 4.7 lbs. per table. Candidates are to formulate and to solve this problem approximately using continuous variables and round down to the nearest discrete value upon the finding of solution. If TD Sdn Bhd decreased 3 hours of welding time, estimate its maximum contribution by using shadow variable. Should the firm decrease the welding time? Justify. (Show your calculation and answer). TD Sdn Bhd is one of the largest manufacturers of furniture in Malaysia. The types of furniture being manufactured include chair, bench, and table, in which the manufacturing process involves two departments namely the tube-bending department as well as the welding department. The time required to manufacture each product in each department is depicted in the following table: Tube bending (hours) Welding (hours) Chair 1.8 Types of Furniture Bench 1.1 2.5 0.3 Table 1.5 3.4 Maximum capacity 1,100 1,300 The sale of a unit of chair earns TD Sdn Bhd a contribution of RM2.70, RM3.30 for a bench, and RM5.30 for a table. The firm is apparently planning its production mix for the Grand Sale event and it aims to maximize contribution. It is estimated that it can sell any number it manufactures. However, production is further limited by the availability of raw material. Apparently, the firm possesses 2,500 lbs. of metal tubing. The manufacturing process of the furniture requires the following amounts of this metal tubing: 2.5 lbs. per chair, 3.1 lbs. per bench, and 4.7 lbs. per table. Candidates are to formulate and to solve this problem approximately using continuous variables and round down to the nearest discrete value upon the finding of solution. If TD Sdn Bhd decreased 3 hours of welding time, estimate its maximum contribution by using shadow variable. Should the firm decrease the welding time? Justify. (Show your calculation and answer).

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ANSWER I Formulate Spreadsheet model Explanation i Shadow price of Weldin... View the full answer