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Penny Chairs received financing from Funance Inc. to produce three types of outdoor chairs that are ideally suited to the beach, pool, and patios: sling
Penny Chairs received financing from Funance Inc. to produce three types of outdoor chairs that are ideally suited to the beach, pool, and patios: sling chairs, Adirondack chairs, and hammocks. At its Bruderheim factory, the unit profit for these chairs is $40, $100, and $90 respectively. Additionally, each type of chair requires cutting, assembly, and finishing. Workers are available to produce these chairs have 120 hours available per month however they cannot spend more than 50 hours per month on any one activity (i.e. cutting, assembly, and finishing). Sling chairs are made up of ten wood pieces for the frame and one piece of cloth. The cutting of the wood takes 30 minutes. Assembling includes sewing the cloth and the attachment of rivets, screws, and fabric. This takes 45 minutes per chair. The finishing step involves sanding, staining, and varnishing chair parts and takes one hour per chair. Adirondack chairs take two hours for the cutting phase as well as the assembly phase whereas the finishing stage takes one hour. For a hammock, cutting takes 0.4 hours, assembly takes three hours, and finishing takes one hour. A. Penny Chairs wants to determine how much of each chair they should produce at their Bruderheim factory to maximize profit. B. Penny Chairs has utilized AI to reduce all the above times by 10% but the AI program license will cost $300 per month. Should they implement the AI program
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