Top-line Furniture designs and manufactures sofas for sale through select retailers. Production will soon begin on a
Question:
Top-line Furniture designs and manufactures sofas for sale through select retailers. Production will soon begin on a new line of sofas. They have chosen to focus on at most 4 products: sectional, love seat, chaise and daybed. Each item requires fabric, cutting, sewing and finishing. ?
Top-line Furniture formulated the problem as a linear program and used Solver to obtain the sensitivity report above:
a) What is the production plan and total profit? Assume that fractional output is acceptable.
b) Which constraints are binding?
c) Would the solution change if the amount of sewing time was reduced by 1000 minutes?
d) Suppose 2500 meters of fabric is found to be damaged and cannot be used. What is the total impact on profits?
e) Suppose that you can get more finishing time for $3500/hour? Should they proceed and if so for how much time?
f) Additional cutting time has been also made available at $100/hr. Should they proceed and if so for how much time?
g) The loveseats have had great sales and it has been possible to increase the price such that the profit is now $2100per couch. Should the quantities of the various products change? Explain.
h) Top-line Furniture really wants to make chaise sofas. What is the impact on profit if they makes 1 sofa?
i) A retailer has asked that Top-line furniture?s make cabriole sofas. Estimated profit is $4500per sofa, but it will require 14meters of fabric, 75minutes of cutting, 60minutes of sewing and 65minutes of finishing. Should Top-line furniture make the cabriole sofa? Explain.
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta