A furniture company is producing two types of furnitureand wants to determine the profit maximizing output combination. Product A requires 8 board feet of wood and 2 lbs of wicker. Product B requires 6 board feet of wood and 6 lbs of wicker. There are 2000 board feet of wood available for product and 1000 lbs of wicker. Product A earns a profit margin of $30 a unit and Product B earns a profit margin of $40 a unit. Show all of your work and provide evidence that you can set up and solve a linear programming (LP) problem. Clearly identify your answer(s) and provide a brief discussion of the results. You may use the POM (preferred and easier) or another software to complete this problem. Submit your results from the software in an Excel file. Each of questions below can be answered by running the problem in POM or the MAC version of QM-POM and using the ranging window in POM or the sensitivity output in the MAC version. a. Formulate and solve the problem as a linear programming problem. Be sure to provide your results and problem setup. b. How many units of product A and B would you produce? c. What would your revenue be with the product combination you specified in part b? d. Which of the two resources (wood or wicker) is fully used? Explain your answer. e. If you could obtain another unit of wicker how much would you be willing to pay for it? Explain your answer. f. If you could obtain another unit of wood how much would you be willing to pay for it? Explain your answer. g. Would your solution change if the price of product B increases to $45 and the price of product A remains at $30? If the solution changes, what is the new solution? If the solution does not change, explain why it would not.
A furniture company is producing two types of furnitureand wants to determine the profit maximizing output combination. Product A requires 8 board feet of wood and 2 lbs of wicker. Product B requires 6 board feet of wood and 6 lbs of wicker. There are 2000 board feet of wood available for product and 1000 lbs of wicker. Product A earns a profit margin of $30 a unit and Product B earns a profit margin of $40 a unit. Show all of your work and provide evidence that you can set up and solve a linear programming (LP) problem. Clearly identify your answer(s) and provide a brief discussion of the results. You may use the POM (preferred and easier) or another software to complete this problem. Submit your results from the software in an Excel file. Each of questions below can be answered by running the problem in POM or the MAC version of QM-POM and using the ranging window in POM or the sensitivity output in the MAC version. a. Formulate and solve the problem as a linear programming problem. Be sure to provide your results and problem setup. b. How many units of product A and B would you produce? c. What would your revenue be with the product combination you specified in part b? d. Which of the two resources (wood or wicker) is fully used? Explain your answer. e. If you could obtain another unit of wicker how much would you be willing to pay for it? Explain your answer. f. If you could obtain another unit of wood how much would you be willing to pay for it? Explain your answer. g. Would your solution change if the price of product B increases to $45 and the price of product A remains at $30? If the solution changes, what is the new solution? If the solution does not change, explain why it would not.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter4: Linear Programming Models
Section: Chapter Questions
Problem 73P
Related questions
Topic Video
Question
A furniture company is producing two types of furnitureand wants to determine the profit maximizing output combination. Product A requires 8 board feet of wood and 2 lbs of wicker. Product B requires 6 board feet of wood and 6 lbs of wicker. There are 2000 board feet of wood available for product and 1000 lbs of wicker. Product A earns a profit margin of $30 a unit and Product B earns a profit margin of $40 a unit.
Show all of your work and provide evidence that you can set up and solve a linear programming (LP) problem. Clearly identify your answer(s) and provide a brief discussion of the results. You may use the POM (preferred and easier) or another software to complete this problem. Submit your results from the software in an Excel file. Each of questions below can be answered by running the problem in POM or the MAC version of QM-POM and using the ranging window in POM or the sensitivity output in the MAC version.
a. Formulate and solve the problem as a linear programming problem. Be sure to provide your results and problem setup.
b. How many units of product A and B would you produce?
c. What would your revenue be with the product combination you specified in part b?
d. Which of the two resources (wood or wicker) is fully used? Explain your answer.
e. If you could obtain another unit of wicker how much would you be willing to pay for it? Explain your answer.
f. If you could obtain another unit of wood how much would you be willing to pay for it? Explain your answer.
g. Would your solution change if the price of product B increases to $45 and the price of product A remains at $30? If the solution changes, what is the new solution? If the solution does not change, explain why it would not.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,