Question
Gaermont Furniture is a chain of stores dedicated to the manufacture of fine furniture. In particular, Gaermont is dedicated to the manufacture of bedrooms, living
Gaermont Furniture is a chain of stores dedicated to the manufacture of fine furniture. In particular, Gaermont is dedicated to the manufacture of bedrooms, living rooms and dining rooms. The items that Gaermont considers offering to its customers over the next year are:
Rooms Dining Room Bedroom
Italy Living Room Rome Dining Room Azucena Bedroom
France Living Room Paris Dining Room Jazmin Bedroom
Morocco Living Room Oxford Dining Room Lirio Bedroom
Libya Living Room El Cairo Dining Room Clavell Bedroom
Egypt Living Room Beijing Dining Room
All types of furniture basically use cedar, walnut, oak and mahogany, in addition to some types of chipboard. Due to the quality of the woods they handle, the supply of this type of material is limited.
On the other hand, the requirements (in working hours) in the carpentry, upholstery and painting departments are presented in the following table (Table 1):
Product | Carpentry (hrs) | Upholstery (hrs) | Painting (hrs) | Demand | Max Production | Max Production per type of Room | Extra Cost | Sale Price |
Italia Living Room | 10 | 16 | 2 | 500 | 1500 | 5000 | $900 | $13,900 |
France Living Room | 7 | 15 | 4 | 500 | 2000 | $1,200 | $16,250 | |
Morocco Living Room | 8 | 12 | 4 | 500 | 1500 | $1,400 | $15,400 | |
Libya Living Room | 12 | 10 | 5 | 500 | 1500 | $800 | $15,500 | |
Egypt Living Room | 10 | 14 | 3 | 500 | 1500 | $1,000 | $16,500 | |
Rome Dining Room | 8 | 8 | 6 | 400 | 1100 | 4500 | $500 | $20,700 |
Paris Dining Room | 12 | 9 | 4 | 400 | 1100 | $600 | $21,200 | |
Oxford Dining Room | 9 | 6 | 8 | 400 | 1100 | $700 | $22,600 | |
El Cairo Dining Room | 10 | 8 | 10 | 400 | 1100 | $700 | $24,700 | |
Beijing Dining Room | 12 | 10 | 9 | 400 | 700 | $800 | $28,900 | |
Azucena Bedroom | 15 | 0 | 12 | 300 | 1000 | 2500 | $300 | $28,000 |
Jazmin Bedroom | 18 | 0 | 15 | 300 | 1000 | $350 | $28,850 | |
Lirio Bedroom | 12 | 0 | 12 | 300 | 1000 | $250 | $28,500 | |
Clavell Bedroom | 12 | 0 | 10 | 300 | 1000 | $300 | $24,500 | |
Hour Wage | $60 | $50 | $45 | |||||
Available people (per month) | 45 | 35 | 32 | |||||
Available hours per month (hrs) | 200 | 200 | 200 |
Due to the different designs that each of these types of furniture have, it is sometimes more convenient to use a particular type of wood. In this way, the planks of the different woods used by these products, as well as the maximum availability of their supplier are presented in the following table (Table 2):
Product | Cedar (plank) | Walnut (plank) | Oak (plank) | Mahogany (plank) |
Italia Living Room | 2 | 1 | 0 | 0 |
France Living Room | 1 | 1 | 2 | 0 |
Morocco Living Room | 0 | 3 | 0 | 1 |
Libya Living Room | 1 | 0 | 1 | 2 |
Egypt Living Room | 0 | 2 | 1 | 1 |
Rome Dining Room | 4 | 0 | 2 | 0 |
Paris Dining Room | 0 | 1 | 1 | 4 |
Oxford Dining Room | 0 | 0 | 2 | 5 |
El Cairo Dining Room | 3 | 2 | 0 | 2 |
Beijing Dining Room | 2 | 0 | 1 | 4 |
Azucena Bedroom | 3 | 3 | 2 | 0 |
Jazmin Bedroom | 4 | 4 | 0 | 0 |
Lirio Bedroom | 0 | 0 | 3 | 5 |
Clavell Bedroom | 0 | 3 | 0 | 4 |
Annual availability (planks) | 15 000 | 12 000 | 12 000 | 16 000 |
Price per plank | $1,800 | $1,400 | $1,500 | $2,000 |
The wooden planks are supplied by the company Beautiful Wood. The price of a cedar plank is $ 1800, the price of a walnut plank is $ 1400, the price of an oak plank is $ 1500, and the price of a mahogany plank is $ 2000.
An important clarification is that the wooden planks can be requested by pieces, that is, the company could request only those pieces that it considers necessary. Except for walnut, where it is necessary to buy all the pieces from the beginning of the year because this is an export material. So, the 12,000 units of walnut have already been requested.
If a walnut plank is not used during the year, then at the end of the year the plank can be sold for $800.
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