Chapter 1

A newly opened bed-and-breakfast projects the following: Monthly fixed costs $8000

Variable cost per occupied room per night $40

Revenue per occupied room per night $145

a) How many rooms would have to be occupied per month to break even?

b) The manager wants to have a holiday promotion and planning to charge only $110 per occupied room per night. How many rooms would have to be occupied per month to break even?

Chapter 2

Lame Example Furniture Company makes two products for its adoring public: chairs (C) and tables (T). Each chair requires 5 hours of labor (L) and 4 linear feet of rich mahogany (M), and each table requires 3 hours of labor and 20 linear feet of rich mahogany. The company has 240 labor hours available this week, and the warehouse has 700 linear feet of rich mahogany available. Profit for each chair is $300 and for each table is $500. The company wants to maximize the total profit.

Formulate the linear programming model for this situation and find the optimal solution using graphical methods. Attach your graph.

Chapter 3

Northwoods Backpackers is a retail catalog store in Vermont that specializes in outdoor clothing and camping equipment. Phone orders are taken each day by a large pool of computer operators, some of whom are permanent and some temporary. A permanent operator can process an average of 76 orders per day, whereas a temporary operator can process an average of 53 orders per day. The company averages at least 600 orders per day. The store has 10 computer workstations. A permanent operator processes about 1.3 orders with errors each day, whereas a temporary operator averages 4.1 orders with errors daily. The store wants to limit errors to 24 per day. A permanent operator is paid $81 per day, including benefits, and a temporary operator is paid $50 per day. The company wants to know the number of permanent and temporary operators to hire to minimize costs.

Formulate an integer programming model for this problem and solve it by using the computer.