The JPC Furniture Company has an ordered for 100 of its narra chairs. The chairs can be produced in two ways. One way is for JPC to produce chair parts in its own shop at a cost of P250 per set of chair parts and use 20 minutes of grade 3 labor to assemble each chair. Grade 3 labor is paid P18.00 per hour. The other way for filling the order is to purchase only parts of the chair from a competitor at a cost of P300 per set of chair parts and JPC used 15 minutes of grade 2 labor to assemble each chair. Grade 2 labor earns P20 per hour. The order must be finished during the next 10 days. If JPC orders the chair part from the competitor he must order at least 50 set of parts. Twenty (20) hours of the two grades of labor could be available at the time for assembly. Using simplex method, determine the best combination of chairs produced entirely by DPC (X₁) and chairs only assemble by JPC (X₂) that will minimize cost. Show complete solution.
Minimization of Profit (Simplex Method)
The JPC Furniture Company has an ordered for 100 of its narra chairs. The chairs can be produced in two ways. One way is for JPC to produce chair parts in its own shop at a cost of P250 per set of chair parts and use 20 minutes of grade 3 labor to assemble each chair. Grade 3 labor is paid P18.00 per hour. The other way for filling the order is to purchase only parts of the chair from a competitor at a cost of P300 per set of chair parts and JPC used 15 minutes of grade 2 labor to assemble each chair. Grade 2 labor earns P20 per hour. The order must be finished during the next 10 days. If JPC orders the chair part from the competitor he must order at least 50 set of parts. Twenty (20) hours of the two grades of labor could be available at the time for assembly. Using simplex method, determine the best combination of chairs produced entirely by DPC (X₁) and chairs only assemble by JPC (X₂) that will minimize cost. Show complete solution.
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