Supply Chain

Strategic Supply Chain Management, LSM 428

Homework 2, due September 09, 2022

1. You are an owner or manager of a production facility that can produce three products, tables, chairs, and desks. From your employees and accountants, you have collected the following information:

Product Table Chair Desk

Profit/unit $50 $20 $40

Cost/unit $15 $10 $12

Resources

All three products are required to be processed on two machines, Machines A and B, and then packaged. Time required to process the three products on the machines and packaging is listed below:

Time in hours/unit

Table Chair Desk Available Time (hours) per week

Machine A: 4 2 6 400

Machine B: 3 3 5 480

Packaging: 2 2 3 360

Customers generally like to buy 4 or more chairs with a table; therefore, you would like to produce at least 6 chairs per table. Your weekly budget is only $1,500 to purchase the material for the three products.

a. Define decision variables, write the objective function and constraints for this problem.

b. Set up an Excel worksheet, save it as an initial worksheet, solve the problem, save the final worksheet, and write the final solution with your hand or type it.

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