. A furniture company makes two products: book shelves selling for ₱5,000 and cabinets selling for ₱8,000. The direct cost per unit is ₱3,000 and ₱4,000, respectively. The company has no difficulty in selling all the products it can manufacture. The assembly department has 60 hours available per week and the finishing department can handle up to 48 hours of work per week. Manufacturing one book shelf requires 4 hours in assembly and 2 hours in finishing. Each cabinet requires 2 hours in assembly and 4 hours in finishing. How can the management allocate the limited man-hour of the two departments in a way which will secure the largest possible net return

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Formulate an LP model for the following problems.
1. A furniture company makes two products: book shelves selling for ₱5,000 and cabinets
selling for ₱8,000. The direct cost per unit is ₱3,000 and ₱4,000, respectively. The
company has no difficulty in selling all the products it can manufacture. The assembly
department has 60 hours available per week and the finishing department can handle
up to 48 hours of work per week. Manufacturing one book shelf requires 4 hours in
assembly and 2 hours in finishing. Each cabinet requires 2 hours in assembly and 4
hours in finishing. How can the management allocate the limited man-hour of the two
departments in a way which will secure the largest possible net return?

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