Consider the Classic Furniture product mix problem (Problem 4-28). In answering each of the following questions, be
Question:
Consider the Classic Furniture product mix problem (Problem 4-28). In answering each of the following questions, be as specific as possible. If it is possible to compute a new profit or production plan, do so.
(a) A part-time employee who works 20 hours per week decided to quit his job. How would this affect the profit and production plan?
(b) Classic has been approached by the factory next door, CabinetsRUs, which has a shortage of both labor and oak. CabinetsRUs proposes to take one full-time employee (who works 30 hours) plus 900 pounds of oak. It has offered $560 as compensation. Should Classic make this trade?
(c) Classic is considering adding a new product, a cherry armoire. The armoire would consume 200 pounds of cherry wood and take 16 hours of labor. Cherry wood costs $9 per pound, and labor costs $12 per hour. The armoire would sell for $2,180. Should this product be made?
(d) What would happen to the solution if a constraint were added to make sure that for every table made, at least two matching chairs were made?
Step by Step Answer:
Managerial Decision Modeling With Spreadsheets
ISBN: 718
3rd Edition
Authors: Nagraj Balakrishnan, Barry Render, Jr. Ralph M. Stair