10. A firm manufacturing office furniture provides the following information regarding resource consumption, availability, and profit contribution:

(a) The firm wants to determine its optimal product mix. Formulate the linear programming problem using the above data.

(b) Solve the problem with Simplex method and indicate the optimal product mix and the total maximun profit contribution.

(c) Indicate the shadow prices of the resources.

(d) Examine the sensitivity of the optimal solution to:
(i) Variation in profit contribution per unit for tables and chairs.
(ii) Variation in the availability of resources.

(e) What other information can be obtained from the optimal solution of the problem?

Transcribed Image Text:

Resources Usage (per unit) Tables Chairs Book cases Daily Availability 8 4 3 640 Timber (cubic feet) Assembly Department 4 6 2 540 (man-hours) Finishing Department 1 1 1 100 (man-hours) Profit Contribution 30 20 12 (per unit/Rs.)