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CT Furniture makes wooden picnic tables and chairs to sell various stores. These stores request both finished and unfinished furniture. To make this furniture, CT must purchase the wood by the board foot. It takes 25 board feet to make one table and 10 board feet to make one chair. Each board foot must be purchased for $2, and up to 10,000 board feet can be purchased. It takes 4 hours to make an unfinished table and 2 hours to make an unfinished chair. To finish an unfinished table (by priming, sealing, and painting), it takes an additional 8 hours, while it takes 6 hours to finish an unfinished chair. A total of 2500 hours are available, which can be proportioned as necessary. We can assume that all pieces of furniture produced can be sold at the following prices: $80 for unfinished table, $120 for finished table, $30 for unfinished chair, and $55 for finished chair. If we have special orders that must be filled, calling for at least 200 tables and 450 chairs to be sold, determine how much of each type of furniture to produce in order to maximize CT's profit.

Operation Management, Management Studies

  • Category:- Operation Management
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