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1. The Pinewood Furniture Company produces chairs and tables from two resources- labor and wood. The company has 80 hours of labor and 36 board-ft

1. The Pinewood Furniture Company produces chairs and tables from two resources- labor and wood. The company has 80 hours of labor and 36 board-ft of wood available each day. Demand for chairs is limited to 6 per day. Each chair requires 8 hours of labor and 2 board ft of wood, whereas a table requires 10 hours of labor and 6 board ft of wood. The profit derived from each chair is $400 and from each table, $100. The company wants to determine the number of chairs and tables to produce each day in order to maximize profit.

Formulate a linear programming model for this problem.

Solve this model by using graphical analysis.

2. The manager of a Burger Doodle franchise wants to determine how many sausage biscuits and ham biscuits to prepare each morning for breakfast customers. The two types of biscuits require the following resources:

Biscuit

Labor (hr.)

Sausage (lb.)

Ham (lb.)

Flour (lb.)

Sausage

0.010

0.10

-

0.04

Ham

0,024

-

0.15

0.04

The franchise has 6 hours of labor available each morning. The manager has a contract with a local grocer for 30 pounds of sausage and 30 pounds of ham each morning. The manager also purchases 16 pounds of flour. The profit for a sausage biscuit is $.60. the profit for a ham biscuit is $.50. The manager wants to know the number of each type of biscuit to prepare each morning in order to maximize profit.

Formulate a linear programming model for this problem.

3. Solve a linear programming model developed in problem 2 for the Burger Doodle restaurant by using the computer

a. identify and explain the shadow prices for each of the resource constraints.

b. which of the resources constraints profit the most?

c. identify the sensitivity ranges for the profit of a sausage biscuit and the amount of sausage available. Explain these sensitivity ranges.

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