A manufacturer of office furniture has recently received a number of inquiries about its interest in producing desks, bookcases, and filing cabinets for several new customers. The production process requires essentially three stages: fabrication, painting, and assembly, with several work stations at each stage. An initial contract has already been signed, committing the firm to 250 filing cabinets. A summary of available information is given below

Practical Management Science
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Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Problem 3:
A manufacturer of office furniture has recently received a number of inquiries about its
interest in producing desks, bookcases, and filing cabinets for several new customers.
The production process requires essentially three stages: fabrication, painting, and
assembly, with several work stations at each stage. An initial contract has already been
signed, committing the firm to 250 filing cabinets. A summary of available information
is given below
Item
Maximum demand
Minimum demand
Profit contribution
Stage
Fabrication
Painting
Assembly
D
1000
D
0.1
0.5
0.3
B
600
OR75 OR80
Time required (hrs)
B
0.2
0.4
0.2
F
0.5
0.2
0.3
F
700
250
OR36
Hours
available
450
400
600
In order to help understand the allocation decisions at stake, help the firm to develop a
LP model.
Transcribed Image Text:Problem 3: A manufacturer of office furniture has recently received a number of inquiries about its interest in producing desks, bookcases, and filing cabinets for several new customers. The production process requires essentially three stages: fabrication, painting, and assembly, with several work stations at each stage. An initial contract has already been signed, committing the firm to 250 filing cabinets. A summary of available information is given below Item Maximum demand Minimum demand Profit contribution Stage Fabrication Painting Assembly D 1000 D 0.1 0.5 0.3 B 600 OR75 OR80 Time required (hrs) B 0.2 0.4 0.2 F 0.5 0.2 0.3 F 700 250 OR36 Hours available 450 400 600 In order to help understand the allocation decisions at stake, help the firm to develop a LP model.
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