A furniture company makes three kinds of office furniture: (a) desks, (b) tables, and (c) chairs. In order to make these products, it needs to rent appropriate equipment at a weekly cost of $2000 for desks, $2500 for tables, and $1500 for chairs. The following table shows the hours of labor and square feet of lumber required per unit of each kind of furniture along with the selling price and the per unit variable cost (i.e., cost of labor and lumber) Per unit Desk Table Chair Labor (hrs) 4 3 2 Lumber (sq ft) 12 8 6 Price $135 $110 $50 Variable Cost $97 82 32 There are 1200 hours of labor and 1500 square feet of lumber available per week. The company wants to produce the combination of the three kinds of furniture that maximizes weekly profit. A. Set up the optimization problem as an integer linear programming problem. (Note: Numbers of different kinds of furniture produced must be integers). B. Use Excel Solver to solve the problem. What is the maximum profit?
A furniture company makes three kinds of office furniture: (a) desks, (b) tables, and (c) chairs. In order to make these products, it needs to rent appropriate equipment at a weekly cost of $2000 for desks, $2500 for tables, and $1500 for chairs. The following table shows the hours of labor and square feet of lumber required per unit of each kind of furniture along with the selling price and the per unit variable cost (i.e., cost of labor and lumber)
Per unit Desk Table Chair Labor (hrs) 4 3 2 Lumber (sq ft) 12 8 6 Price $135 $110 $50 Variable Cost $97 82 32
There are 1200 hours of labor and 1500 square feet of lumber available per week. The company wants to produce the combination of the three kinds of furniture that maximizes weekly profit.
A. Set up the optimization problem as an integer linear programming problem. (Note: Numbers of different kinds of furniture produced must be integers).
B. Use Excel Solver to solve the problem. What is the maximum profit?
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