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A furniture company manufactures desks and chairs. Each desk uses four units of wood, and each chair uses three units of wood.  A desk contributes $250 to profit, and a chair contributes $145. Marketing restrictions require that the number of chairs produced be at least four times the number of desks produced. There are 2,000 units of wood available. Use Solver to maximize the company's profit. Confirm graphically that the solution in part 1 maximizes the company's profit. Use SolverTable to see what happens to the decision variables and the total profit when the availability of wood varies from 1,000 to 3,000 in 100-unit increments. Based on your findings, how much would the company be willing to pay for each extra unit of wood over its current 2,000 units?

A furniture company manufactures desks and chairs. Each desk uses four units of wood, and each chair uses three units of wood.  A desk contributes $250 to profit, and a chair contributes $145. Marketing restrictions require that the number of chairs produced be at least four times the number of desks produced. There are 2,000 units of wood available. Use Solver to maximize the company's profit. Confirm graphically that the solution in part 1 maximizes the company's profit. Use SolverTable to see what happens to the decision variables and the total profit when the availability of wood varies from 1,000 to 3,000 in 100-unit increments. Based on your findings, how much would the company be willing to pay for each extra unit of wood over its current 2,000 units?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A furniture company manufactures desks and chairs. Each desk uses four units of wood, and each chair uses three units of wood.  A desk contributes $250 to profit, and a chair contributes $145. Marketing restrictions require that the number of chairs produced be at least four times the number of desks produced. There are 2,000 units of wood available.

  1. Use Solver to maximize the company's profit.
  2. Confirm graphically that the solution in part 1 maximizes the company's profit.
  3. Use SolverTable to see what happens to the decision variables and the total profit when the availability of wood varies from 1,000 to 3,000 in 100-unit increments. Based on your findings, how much would the company be willing to pay for each extra unit of wood over its current 2,000 units?
AutoSave Module 2 Problem Workbook (1) - O Search (Alt+Q) 困 ff Oleksiy Minkin541 OM File Home Insert Draw Page Layout Formulas Data Review View Developer Help Acrobat Power Pivot SolverTable 8 Share P Comments Σ x, Subscript x' Superscript EInsert v Calibri v 11 - A A" General DX Delete v Paste BIU - E A =E E E E E - E - % 9 8 8 Conditional Format as Cell Sort & Find & Analyze C00 O v Filter v Select Format v Formatting - Table Styles v Data Clipboard Font Alignment Number Styles Cells Editing Analysis Customized A26 fe A. B E G H K L M P Q 1 Manufacturing desks and chairs 2 3 Inputs 4 Desks Chairs 5 Unit margins 6 Wood usage per unit 7 8 Decisions 9 Desks Chairs 10 Units produced 11 12 Constraint on wood 13 Wood used Wood available 14 15 16 Constraint on chairs 17 Chairs produced Chairs required 18 19 20 Objective to maximize 21 Profit 22 Р3-26 p3-34 Ready + 100 % 19:16 О Введите здесь текст для поиска 2 9°C A ENG 16.12.2021 尔
Transcribed Image Text:AutoSave Module 2 Problem Workbook (1) - O Search (Alt+Q) 困 ff Oleksiy Minkin541 OM File Home Insert Draw Page Layout Formulas Data Review View Developer Help Acrobat Power Pivot SolverTable 8 Share P Comments Σ x, Subscript x' Superscript EInsert v Calibri v 11 - A A" General DX Delete v Paste BIU - E A =E E E E E - E - % 9 8 8 Conditional Format as Cell Sort & Find & Analyze C00 O v Filter v Select Format v Formatting - Table Styles v Data Clipboard Font Alignment Number Styles Cells Editing Analysis Customized A26 fe A. B E G H K L M P Q 1 Manufacturing desks and chairs 2 3 Inputs 4 Desks Chairs 5 Unit margins 6 Wood usage per unit 7 8 Decisions 9 Desks Chairs 10 Units produced 11 12 Constraint on wood 13 Wood used Wood available 14 15 16 Constraint on chairs 17 Chairs produced Chairs required 18 19 20 Objective to maximize 21 Profit 22 Р3-26 p3-34 Ready + 100 % 19:16 О Введите здесь текст для поиска 2 9°C A ENG 16.12.2021 尔
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