Answer to Question #295955 in Financial Math for James

Question

A furniture manufacturer makes two types of furniture – chairs and sofas. The production of the

sofas and chairs requires three operations – carpentry, finishing, and upholstery. Manufacturing a

chair requires 3 hours of carpentry, 9 hours of finishing, and 2 hours of upholstery. Manufacturing a

sofa requires 2 hours of carpentry, 4 hours of finishing, and 10 hours of upholstery. The factory has

allocated at most 66 labor hours for carpentry, 180 labor hours for finishing, and 200 labor hours

for upholstery. The profit per chair is $90 and the profit per sofa is $75.

a) Use graphical method to recommend an optimal production plan

(8 marks)

b) Discuss any three assumptions that you may have considered in formulating the production plan