Question
Burger Office Equipment produces two types of desks, standard and deluxe. Deluxe desks have oak tops and more-expensive hardware and require additional time for finishing
Burger Office Equipment produces two types of desks, standard and deluxe. Deluxe desks have oak tops and more-expensive hardware and require additional time for finishing and polishing. Standard desks require 70 board feet of pine and 10 hours of labor, whereas deluxe desks require 60 board feet of pine, 18 square feet of oak, and 15 hours of labor. For the next week, the company has 5,000 board feet of pine, 750 square feet of oak, and 400 hours of labor available. Standard desks net a profit of $225, and deluxe desks net a profit of $320. All desks can be sold to national chains such as Staples or Office Depot.
Standard | Deluxe | |
Profit | $225 | $320 |
Pine | 70 | 60 |
Oak | 0 | 18 |
Labor | 10 | 15 |
a. Identify the decision variables.
b. Mathematically formulate a linear optimization model.
c. Solve the model using Excel solver
d.Get sensitivity report
e. Answer the following questions
1. Explain the reduced cost associated with deluxe desks.
2. If 25% of the pine is deemed to be cosmetically defective, how will the optimal solution be affected?
3. The shop supervisor is suggesting that the workforce be allowed to work an additional 50 hours at an overtime premium of $18/hour. Is this a good suggestion? Why or why not?
4. If the unit profit for standard desks is decreased to $215, how will the optimal solution and total profit be affected?
5. If the unit profit of standard desks is only $210, how will the optimal solution and total profit be affected
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