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A furniture manufacturer produces three products, desks, tables, and chairs. These products can be produced during either the morning shift or the evening shift. The morning shift has a labor cost of $20 per hour with a maximum availability of 20,000 hours. The evening shift has a labor cost of $25 per hour and is limited to 15,000 hours. The labor, lumber, and demand requirements are given as follows:

Resource: Desk Table Chair

Labor (hours): 0.75, 2, 0.5

Lumber (pounds): 7, 15, 4

Nails (pounds): 0.5, 2, 0.25

Demand: 50, 75,100

Assume that there are 20,000 pounds of lumber and 20,000 pounds of nails available for both shifts. Use Excel to formulate and solve this problem to minimize total labor cost.

Operation Management, Management Studies

  • Category:- Operation Management
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