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Brown Furniture makes three kinds of furniture: chairs, desks, and tables. Each product requires skilled labor in the parts fabrication department, unskilled labor in the

Brown Furniture makes three kinds of furniture: chairs, desks, and tables. Each product requires skilled labor in the parts fabrication department, unskilled labor in the assembly department, machining on some key pieces of equipment, and some wood as raw material. At current prices, the unit profit contribution for each product is known, and the company can sell everything it manufactures. The size of the workforce has been established so the number of skilled and unskilled labor hours is known. The time available on the relevant equipment has also been determined, and a known quantity of wood can be obtained each month under contract with a wood supplier. The data shown below summarize the parameters of the problem.

Chairs Desks Tables Resources available
Fabrication (hours) 4 6 2 2000 hours
Assembly (hours) 3 8 6 1800 hours
Machining (hours) 9 6 4 1600 hours
Wood (sq ft) 30 40 25 9400 sq. ft
profit per unit $16 $20 $14

Brown furniture company would like to determine the best combination of furniture to make (adhering to the resource restrictions for the current month) to maximize profit.

a) Write the Linear program formulation for the above optimization problem. Make your formulation clear by defining the variables, constraints, objective function, etc.

b) Solve it using an Excel solver. Please attach your solver model and output (Including the sensitivity report As exhibit A

c) What is the maximum profit? What production quantities should be made to achieve this profit?

d) Which resources are economically scarce (i.e they are limiting our profits)

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