Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Decorum Incorporated manufactures high - end ceiling fans. Their sales are seasonal with higher demand in the warmer summer months. Typically, sales average 4 0

Decorum Incorporated manufactures high-end ceiling fans. Their sales are seasonal with higher demand in the warmer summer months. Typically, sales average 400 units per month. However, in the hot summer months (June, July, and August), sales spike up to 600 units per month. Decorum can produce up to 500 units per month at a cost of $305 each. By bringing in temporary workers, Decorum can produce up to an additional 75 units at a cost of $345 each. Decorum sells the ceiling fans for $510 each. Decorum can carry inventory from one month to the next, but at a cost of $15 per ceiling fan per month. Decorum has 15 units in inventory at the start of January.
Click here for the Excel Data File
Build and solve a linear programming spreadsheet model to maximize the profit over all 12 months.
Assuming Decorum must produce enough ceiling fans to meet demand, how many ceiling fans should Decorum produce each month (using their regular labor force and/or temporary workers) over the course of the next year so as to maximize their total profit?
Determine the net profit.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Information Technology Project Management

Authors: Kathy Schwalbe

6th Edition

978-111122175, 1133172393, 9780324786927, 1111221758, 9781133172390, 324786921, 978-1133153726

More Books

Students also viewed these General Management questions