Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Reposting as other answer did not show workings, need workings to learn how to do it please. Thanks The scenario Park Furnishings manufactures school and

Reposting as other answer did not show workings, need workings to learn how to do it please. Thanks

The scenario

Park Furnishings manufactures school and university classroom furniture. The company has two production plants, located at Easton and Weston. The Easton plant produce tables and chairs and the Weston plant produces desks and computer workstations. Park has a working day of 7.5 hours and employs nine workers at each plant. You may assume that there is a total of 24 working days every month.

All Park products are manufactured using finished pressed wood and polished aluminium fittings. Including scrap, each table and desk uses 20 m2 of pressed wood whereas each chair and workstation needs 12.5 m2 and 30 m2 respectively. A total of 75000 m2 of pressed wood is available each month and is divided equally between the two plants. The aluminium fittings that reinforce the legs of all the production items are purchased from an outside supplier. Each plant can purchase up to 3000 boxes of fittings per month and one box is required for every item of furniture produced. Production times are 72 minutes per table, 18 minutes per chair, 90 minutes per desk and 2 hours per workstation.

The unit profit for chairs and tables are 31 and 77 respectively, whereas each desk and workstation generates profits of 108 and 132 respectively.

Park is considering combining operations of both plants into a single factory. This consolidation will have the advantage of combining all available production resources as well as reducing administration costs by 1700 per month; however they have estimated that the cost of renovating and equipping the factory will be 1300000. Due to the current financial position Park Furnishings is only prepared to go ahead with the combined operation if it saves money in the first year of operation.

Let

  • x1x1 represent the number of tables made per month;
  • x2x2 represent the number of chairs made per month;
  • x3x3 represent the number of desks made per month;
  • x4x4 represent the number of workstations made per month;

where x1,x2,x3,x40

image text in transcribed

(c) Combined Enter the constraints for combining the plants and the expression to be optimised. Maximise: O 2 + 12+ 13+ O n subject to O2+ O2z+ O2+ O2450 [Wood] O 21+0 2+O 23+ 245 [metal fittings] O 2 + O 2z+ 13+ O 2 0 (Labour] Determine the optimal solution for 21, 22, 23 and 24 and the profit that this solution will generate and enter your solution below. (Enter the optimal solution correct to 3dp and the profit to the nearest pound.) The optimal solution is x = 22=0 23= 0 14 = Profit: Is it economically sensible to combine the two plants? Select (c) Combined Enter the constraints for combining the plants and the expression to be optimised. Maximise: O 2 + 12+ 13+ O n subject to O2+ O2z+ O2+ O2450 [Wood] O 21+0 2+O 23+ 245 [metal fittings] O 2 + O 2z+ 13+ O 2 0 (Labour] Determine the optimal solution for 21, 22, 23 and 24 and the profit that this solution will generate and enter your solution below. (Enter the optimal solution correct to 3dp and the profit to the nearest pound.) The optimal solution is x = 22=0 23= 0 14 = Profit: Is it economically sensible to combine the two plants? Select

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

Financial Management Theory And Practice

Authors: Prasanna Chandra

7th Edition

0070656657, 978-0070656659

More Books

Students also viewed these Finance questions