In problems 38-41, construct a mathematical model in the form of a linear programming problem (The answer in the back of the book for these application problems include the model.) Then solve the problem by the simplex, dual problem, or big
Manufacturing. A company manufactures outdoor furniture consisting of regular chairs, rocking chairs, and chaise lounges. Each piece of furniture passes through three different production departments: fabrication, assembly, and finishing. Each regular chair takes
(A) How many chairs of each type should the company produce in order to maximize profit? What is the maximum profit?
(B) Discuss the effect on the optimal solution in part (A) if the profit on a regular chair is increased to
(C) Discuss the effect on the optimal solution in part (A) if the available hours on the finishing department are reduced to

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Chapter 6 Solutions
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- If the average price of a new one family home is $246,300 with a standard deviation of $15,000 find the minimum and maximum prices of the houses that a contractor will build to satisfy 88% of the market valuearrow_forwardT={(−7,1),(1,−1),(6,−8),(2,8)} Find the domain and range of the inverse. Express your answer as a set of numbers.arrow_forwardT={(−7,1),(1,−1),(6,−8),(2,8)}. Find the inverse. Express your answer as a set of ordered pairs.arrow_forward
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- Starting with the finished version of Example 6.2, attached, change the decision criterion to "maximize expected utility," using an exponential utility function with risk tolerance $5,000,000. Display certainty equivalents on the tree. a. Keep doubling the risk tolerance until the company's best strategy is the same as with the EMV criterion—continue with development and then market if successful. The risk tolerance must reach $ ____________ before the risk averse company acts the same as the EMV-maximizing company. b. With a risk tolerance of $320,000,000, the company views the optimal strategy as equivalent to receiving a sure $____________ , even though the EMV from the original strategy (with no risk tolerance) is $ ___________ .arrow_forward2.8.1arrow_forwardDo not use the Residue Theorem. Thank you.arrow_forward
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