Chapter 13, Problem 26

Given:
Desk Chair
Units of Wood 4 3
Profit $400

X1  chairs
X2  desks

Maximize = 400X1 + 250X2

Constraints:
4X1 + 3X2 <= 2000 (wood condition)
X2 >= 2X1 (marketing restriction)
X1, X2 >= 0 (non negativity constraint)

To solve, we use excel to solve for the max profit

Based on the results, the maximum profit obtained with the optimal solution is $ 180,000.

B. Confirming graphically the solution

Total profit objective function is:
Maximize = 400X1 + 250 X2

Constraints:
4X1 + 3X2 <= 2000 (wood condition)
X2 >= 2X1 (marketing restriction)
X1, X2 >= 0 (non negativity constraint)

Solving equations, X2 = 2X1 and 4X1 + 3X2 = 2000, intersection point is:
4x1 + 3X2 = 2000
  4x1 + 3(2X1) = 2000 (as x2 = 2x1)
 10x1 = 2000
 X1 = 200

And
X2 = 2x1
 X2 = 2(100)
 X2 = 400

This the optimal point is (x1, x2) = (200, 400)

Also, at this optimal point (x1, x2) = (200, 400), the optimal solution is:
Total Profit = 400x1 + 250X2
= (400x200) + (250X400)
= $ 180,000

The same is obtained as part A. This means that the solution is correct.
Chapter 13, Question 28
Given data:
Month 1 2 3 4
Production Cost $50 $80 $40 $70
per Unit
Demand 500 650 1000 700

At the end of the inventory, all items are sold at $60.

Therefore: units_in_hand >= Demand
Using Solver, the optimal solution is:
Month 1 2 3 4
Units Produced 1150 0 1700 0

The total cos is $152,500

With the use of solver table and based from the results obtained, we can see that the total cost
decreases when the initial inventory increases. The change in the initial inventory only affects
the first month while the other months remains unchanged.
If we set the initial inventory to a larger number, then the lesser the total costs should be.

Chapter 14, Problem 1

First step is to change the function model and include weekly payroll making sure to include the
rates of $10 per hour for weekdays and $15 per hour for weekends.
After that, use the solver to make the necessary adjustments