File. in the rule Bec Le form Rile. Question 2 valu.com side 74 1079 LP asking An office furniture company produces ergonomic computer workstations on tulles. Each consists of a bulle frame with adjustable shelves for the keyboard, teritor.computer, printer, and other through the firm's own retail outlets Manufacture of the workstations consists of five operations cutting the tubular frame pieces, welding the frames, spray painting frames, making the shelves and massembly framed shelves and zullen - Twie 1 lists the labour input required for the various operations, the production capacity for each operation, the costs of the parts and supplies used, and the wholesale price of the units. The labour capacities imply that one worker cuts tubes, while two each weld and assemble, and three make shelves. Welding, shelf-making, and wasembly all require a daily setup time, hence the lost hour of production. The spray paiming and curing facility has a capacity for 32 frames per day, regardless of which type Table 1 Product Assembly Cutting mbes Welding Dames Making sbelves Matis Wholesale Cost price 35 min 25 MB Basic Standard Luxury 16 12 mia 20 D 36 min 50 30 min $43 560 $85 1143 $180 5245 15 hours 23 boas 15 hours Capacity day S hours These five capacities are technical or physical output restrictions imposed by the current production process and the facilities used. They can only be increased by adding more workers, arranging for overtime, or a change in equipment. They are hard constraints of the production process Marketing considerations dictate that the number of standard units should be at least equal to one third of the number of basic units. In contrast to the five hard conditions above, this condition is the result of a deliberate management policy. It can be changed by a simple management decision. It is thus a soft constraint on the choice of product mix. Management would like to know the product mix which uses its current production capacities most effectively, while also meeting the marketing restriction. We shall interpret most effectively as that use of resources which maximizes profit. Profit is the difference between the revenue generated by the output and all costs incurred. We shall arbitrarily set the basic planning period at one day. Certain costs are fixed, regardless of the product mix, such as the various types of overhead. In the short run, even labour costs are fixed, since cach worker is paid for the entire 8 hours of each working day, even if he or she may be idle for a fraction of the time. In this example, the only cost items that vary as a function of the product mix are the material cost. Therefore, an appropriate measure of performance is given by the difference between revenues and material costs which we denote as the gross profit as outlined below. Number of units day Materal cost Difference per mit per unit Type Revente per mit Gross profit per day 100 BASIC 120 STANDRD 160 LUXURY Basic $143 Standard $180 Luxury $246 $43 $60 $86 BASIC STANDRD LUXURY $100 $120 $160 Total day GROSSPROF = 100 BASIC - 120 STANDRD - 160 LUXURY 1. Cutting Time constraint: (CUTTING) 16 BASIC + 12 STANDRD + 20 LUXURY 0 B E F 1 LP che cocientform for product mix problem 2 Deos on variables 3 3 BASIC STANDRD LUXURY GH 4 sign RHS max 180 20 5 Objective: GROSSPROF 100 5 CUTTING 10 1 Corts WELDING 25 PAINTINS 1 SHELVING 38 10 ASSEMBLY BASESTD M-03333 120 12 226 1 elle 480 30 000 32 1 00 80 40 av VIVA 1380 900 1 0 Answer the following questions (a-i) using the output please be brief. If there are two possible answers one will suffice. Where necessary a range analysis must be shown. a) What is the optimal solution in words? 2 marks b) 20 hours of cutting were lost. Evaluate the effect. 2 marks c) An extra 4 hour of painting was available. evaluate the effect .2 marks d) Because of sickness of 1 worker, 48 hours of shelving was lost, evaluate the effect. marks e) If the selling price of Standard went up by $10.00. Evaluate the effect? 2 marks f) What is the situation if the company want to produce Luxury ? Evaluate the effect 2 marks g) If the selling price of Basic decrease by $10.00. Evaluate the effect? 2 marks h) Is the problem degenerate? Explain! 2 marks i) Are there alternative optima in this problem? Explain 2 marks i) What value should be in the slack column that is given by ???? 2 mark What the owner hours wou ve 8 Autof painting Sheeran stani wont up br. we the effect 2 arka the the computer Evalhotect 2 rose price of Banderas by St. Etie eller 2 marka Are the matte paimti mai mark W. value to be the sun tymark Microsoft Excel 15.0 Answer Report Worksheet: Solution winment Ix02 p. Report Created: 1/10 2020 13:27:04 Obiective Call Max Original Cell Nama: GROSS PROFIT SFS Final Vine 3525714286 0 Variable Cells Original Value Final Value Integer 0 15.71428571 Comin Cell Name DECISION VARIABLES SCS BASIC DECISION VARIABLES SD$4 STANDARD DECISION VARIABLES $E$4 LUXURY 0 16.28571429 Contin 0 Contin Constraints Cell Name SESI BASIC TO STD MIX SFS6 CUTTING SFS7 $F$8 SF$9 Cell Value Formula Status Slack Not 11.04814286 $F$11>=$H$11 Binding 11.04814286 Not 446.8571429 $F$6 0 B E F 1 LP che cocientform for product mix problem 2 Deos on variables 3 3 BASIC STANDRD LUXURY GH 4 sign RHS max 180 20 5 Objective: GROSSPROF 100 5 CUTTING 10 1 Corts WELDING 25 PAINTINS 1 SHELVING 38 10 ASSEMBLY BASESTD M-03333 120 12 226 1 elle 480 30 000 32 1 00 80 40 av VIVA 1380 900 1 0 Answer the following questions (a-i) using the output please be brief. If there are two possible answers one will suffice. Where necessary a range analysis must be shown. a) What is the optimal solution in words? 2 marks b) 20 hours of cutting were lost. Evaluate the effect. 2 marks c) An extra 4 hour of painting was available. evaluate the effect .2 marks d) Because of sickness of 1 worker, 48 hours of shelving was lost, evaluate the effect. marks e) If the selling price of Standard went up by $10.00. Evaluate the effect? 2 marks f) What is the situation if the company want to produce Luxury ? Evaluate the effect 2 marks g) If the selling price of Basic decrease by $10.00. Evaluate the effect? 2 marks h) Is the problem degenerate? Explain! 2 marks i) Are there alternative optima in this problem? Explain 2 marks i) What value should be in the slack column that is given by ???? 2 mark What the owner hours wou ve 8 Autof painting Sheeran stani wont up br. we the effect 2 arka the the computer Evalhotect 2 rose price of Banderas by St. Etie eller 2 marka Are the matte paimti mai mark W. value to be the sun tymark Microsoft Excel 15.0 Answer Report Worksheet: Solution winment Ix02 p. Report Created: 1/10 2020 13:27:04 Obiective Call Max Original Cell Nama: GROSS PROFIT SFS Final Vine 3525714286 0 Variable Cells Original Value Final Value Integer 0 15.71428571 Comin Cell Name DECISION VARIABLES SCS BASIC DECISION VARIABLES SD$4 STANDARD DECISION VARIABLES $E$4 LUXURY 0 16.28571429 Contin 0 Contin Constraints Cell Name SESI BASIC TO STD MIX SFS6 CUTTING SFS7 $F$8 SF$9 Cell Value Formula Status Slack Not 11.04814286 $F$11>=$H$11 Binding 11.04814286 Not 446.8571429 $F$6