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Inputs x y
Furniture type Chair Desk
Profit per Unit 250 400
Units produced 400 200
Units of wood 3 4
Max Profit 180000
C.
Wood Avalilable Units Produced Desks Units Produced Chair Total Profit
1000 100 200 $90,000.00
1100 110 220 $99,000.00
1200 120 240 $108,000.00
1300 130 260 $117,000.00
1400 140 280 $126,000.00
1500 150 300 $135,000.00
1600 160 320 $144,000.00
1700 170 340 $153,000.00
1800 180 360 $162,000.00
1900 190 380 $171,000.00
2000 200 400 $180,000.00
2100 210 420 $189,000.00
2200 220 440 $198,000.00
2300 230 460 $207,000.00
2400 240 480 $216,000.00
2500 250 500 $225,000.00
2600 260 520 $234,000.00
2700 270 540 $243,000.00
2800 280 560 $252,000.00
2900 290 580 $261,000.00
3000 300 600 $270,000.00
Profit 18900-18000/100
90
Thus company is willing to pay $90 for each extra unit of wood over its curent 2000 units. Likewise for a unit decrease in wood
a unit decrease in wood the profit is reduced by $90
Production Planning
Initial Inventory 0
Storage Cost $20
Month 1 2 3 4
Production Cost per Unit $50 $80 $40 $70
Units Produced 1150 0 1700 0
Units in Hand 1150 650 1700 700
>= >= >= >=
Demand 500 650 1000 700
B.
Results of Sensitivity Abalysis
115 0 170 0 $1,525.00
0 115 0 170 0 $1,525.00
10 105 0 170 0 $1,475.00
20 95 0 170 0 $1,425.00
30 85 0 170 0 $1,375.00
40 75 0 170 0 $1,325.00
50 65 0 170 0 $1,275.00
60 55 0 170 0 $1,225.00
70 45 0 170 0 $1,175.00
80 35 0 170 0 $1,125.00
90 25 0 170 0 $1,075.00
100 15 0 170 0 $1,025.00
Every extra 10 units produced a $50 decrease in the cost because that much less needs to be produced in month 1
Change in cost
$50.00
$50.00
$50.00
$50.00
$50.00
$50.00
$50.00
$50.00
$50.00
$50.00
oduced in month 1
Worker Scheduling Model
Descision Variable: Numbe of employees startinh their five-day shift on various days
Monday 6
Tuesday 5
Wednesday 0
Thursday 7
Friday 0
Saturday 3
Sunday 0
Objective to Machine
Total Employees 10,013.33
Sunday
0
7
0
3
0
11
>=
11
120
Grand Prix transportation model PLANT 1
Objective to minimize
Total cost $164,150
Objective to minimize
Total cost $176,050
Grand Prix transportation model PLANT 3
Objective to minimize
Total cost $168,850