A furniture company manufactures desks and chairs. Each desk uses four units of woods and each chair uses three units of wood. A desk contributes $400 to profit, and a chair contributes $250. Marketing restrictions require that the number of chairs produced be at least twice the number of desks produced. There are 2000 units of wood available. Use Solver to maximize the company’s profit. Confirm graphically that the solution in part a maximized the company’s profit. Use SolverTable to see what happens to the decision variables and the total profit when the availability of wood varies from 1000 to 3000 in 100-unit increments. Based on your findings how much would the company be willing to pay for each extra unit of wood over its current 2000 units? How much profit would the company lose if it lost any of its current 2000 units?
A furniture company manufactures desks and chairs. Each desk uses four units of woods and each chair uses three units of wood. A desk contributes $400 to profit, and a chair contributes $250. Marketing restrictions require that the number of chairs produced be at least twice the number of desks produced. There are 2000 units of wood available. Use Solver to maximize the company’s profit. Confirm graphically that the solution in part a maximized the company’s profit. Use SolverTable to see what happens to the decision variables and the total profit when the availability of wood varies from 1000 to 3000 in 100-unit increments. Based on your findings how much would the company be willing to pay for each extra unit of wood over its current 2000 units? How much profit would the company lose if it lost any of its current 2000 units?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A furniture company manufactures desks and chairs. Each desk uses four units of woods and each chair uses three units of wood. A desk contributes $400 to profit, and a chair contributes $250. Marketing restrictions require that the number of chairs produced be at least twice the number of desks produced. There are 2000 units of wood available.
Use Solver to maximize the company’s profit.
Confirm graphically that the solution in part a maximized the company’s profit.
Use SolverTable to see what happens to the decision variables and the total profit when the availability of wood varies from 1000 to 3000 in 100-unit increments. Based on your findings how much would the company be willing to pay for each extra unit of wood over its current 2000 units? How much profit would the company lose if it lost any of its current 2000 units?
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Step 1: Define - Linear Programming:
VIEWStep 2: Examine - Objective Functions and Constraints:
VIEWStep 3: Calculate - Maximum Profit - Solver:
VIEWStep 4: Calculate - Maximum Profit - Solver:
VIEWStep 5: Calculate - Maximum Profit - Graphical approach:
VIEWStep 6: Calculate - Maximum Profit - Graphical approach:
VIEWStep 7: Calculate - Solver Table - Input:
VIEWStep 8: Calculate - Solver Table - Output:
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