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0% found this document useful (0 votes)
37 views3 pages

Solution 8.1

Uploaded by

Charlie R
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Chapter: Linear Programming (LP) Question 1 – Production problem Winkler

Furniture manufactures two different types of china cabinets: a French Provincial


model and a Danish Modern model. Each cabinet produced must go through
three departments: carpentry, painting, and finishing. The table below contains all
relevant information concerning production times per cabinet produced and
production capacities for each operation per day, along with net revenue per unit
produced. The firm has a contract with an Indiana distributor to produce a
minimum of 300 of each cabinet per week (or 60 cabinets per day). Owner Bob
Winkler would like to determine a product mix to maximize his daily revenue.
Cabinet Style Carpentry (Hours/Cabinet) Painting (Hours/Cabinet) Finishing
(Hours/Cabinet) Net Revenue / Cabinet ($) French Provincial 3 1.5 0.75 28 Danish
Modern 2 1 0.75 25 Department Capacity (Hours) 360 200 125 (a) Formulate as a
Linear Programming problem. (Objective function and constraints must be clearly
shown) (b) Solve this problem using Excel solver. Based on your findings, what
would you suggest to Bob Winkler to solve his problem? (c) If the available
painting hours are increased to 400 hours, will your answers in (b) change?
Please explain your new findings using Excel solver. Note: Hello! If you are not
sure how to fulfill all the requirements needed, please do not attempt the
question. Microsoft excel and excel solver are needed to solve these questions.
Please send me the answers in an excel file if possible. Your help is very much
appreciated. Thank you.

(a)

Let,

X1 = Number of French Provincial model to be produced


X2 = Number of Danish Modern model to be produced

Objective function

Maximize Z = total revenue = 28 X1 + 25 X2

Subject to,

Constraints:

3.0 X1 + 2.0 X2 <= 360 (Carpentry hours) 1.5 X1 + 1.0 X2 <= 200 (Painting hours) 0.75
X1 + 0.75 X2 <= 125 (Finishing hours) X1 >= 60

X2 >= 60

X1, X2 >= 0
(b)

Excel formulation screenshot

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Solution (Answer report)

Objective Cell (Max)


Cell Name Original Value Final Value
$E$4 Revenue 0 3930
Variable Cells
Cell Name Original Value Final Value Integer
$C$3 Value of X1 0 60 Contin
$D$3 Value of X2 0 90 Contin
Constraints
Cell Name Cell Value Formula Status Slack
$E$6 Carpentry 360 $E$6<=$G$6 Binding 0 $E$7 Painting 180 $E$7<=$G$7 Not
Binding 20 $E$8 Finishing 112.5 $E$8<=$G$8 Not Binding 12.5 $E$9 Min X1 60
$E$9>=$G$9 Binding 0
$E$10 Min X2 90 $E$10>=$G$10 Not Binding 30
Recommendation

Produce French Provincial model 60 units per day and Danish Modern model 90 per
day to attain the maximum revenue per day of $3,930.

(c)

Answer report:

Objective Cell (Max)


Cell Name Original Value Final Value
$E$4 Revenue 0 3930
Variable Cells
Cell Name Original Value Final Value Integer
$C$3 Value of X1 0 60 Contin
$D$3 Value of X2 0 90 Contin
Constraints
Cell Name Cell Value Formula Status Slack
$E$6 Carpentry 360 $E$6<=$G$6 Binding 0 $E$7 Painting 180 $E$7<=$G$7 Not
Binding 20 $E$8 Finishing 112.5 $E$8<=$G$8 Not Binding 12.5 $E$9 Min X1 60
$E$9>=$G$9 Binding 0
$E$10 Min X2 90 $E$10>=$G$10 Not Binding 30
Note carefully in the answer report that the utilized painting hours is only 180 against an
available capacity of 200 hours. So, a 20 hours slack capacity is available. So, painting
is a non-binding constraint. Therefore, additional capacity in painting will have no impact
on the optimal solution.

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problemwinkler-furniture-manufactures-two-different-types-of-china-cabinets-a-french-provincial-
model-and-a-danish-modern-model-each-cabin/

Common questions

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Changes in the binding constraints, such as carpentry hours and minimum requirement for French Provincial, would impact the optimal solution as these constraints are fully utilized in the current setup. However, modifying non-binding constraints like painting hours, which have slack, would not affect the optimal solution unless the changes make them binding .

Slack represents the difference between the total available resource and the used resource in the constraints. A zero slack value indicates a binding constraint, meaning the limitation is fully utilized in the optimal solution. A non-zero slack indicates non-binding constraints, which have unused capacity .

The optimal product mix is to produce 60 units of the French Provincial model and 90 units of the Danish Modern model daily, maximizing revenue to $3,930. The carpentry and the minimum production requirement for French Provincial (X1 ≥ 60) constraints become binding, as they reach their limits without slack .

The introduction of a minimum production requirement adds constraints that ensure at least a certain number of cabinet units are produced. This can potentially become binding if the optimal solution is near or exactly at this minimum, impacting the flexibility to modify production numbers based on other resource constraints for maximum revenue .

The painting hours constraint remains non-binding due to the current optimal production mix not fully utilizing the existing capacity. It indicates that other factors, such as carpentry hours or minimum production requirements for the French Provincial cabinet, are more restrictive in achieving optimal revenue, overshadowing the impact of painting hours, which have ample slack .

Increasing available painting hours to 400 does not affect the optimal product mix or revenue. The painting constraint was already non-binding with 20 hours of slack at 200 total hours. Thus, increasing to 400 hours doesn't change the maximum revenue of $3,930 or the optimal mix of 60 French Provincial and 90 Danish Modern cabinets .

Increasing finishing hours could potentially impact the production strategy if this constraint was binding or had minimal slack. However, in the current scenario, it is not binding with 12.5 hours of slack, so increasing this resource alone would not alter the optimal production mix or revenue .

Linear programming can assist in strategic planning by modeling different scenarios like new product introductions, changing resource allocations, and market demand shifts, allowing the company to evaluate potential impacts on revenue and resource utilization, guiding long-term investment in capacities or shifts in production strategies to align with business goals .

To achieve higher revenue, reevaluation could focus on identifying new market conditions or pricing strategies to increase net revenue per cabinet, expanding resource capacities of binding constraints, or exploring product efficiency changes to reduce production time per unit .

Interpreting slack values requires understanding that these values indicate unused resources. Factors to consider include whether increasing capacity for non-binding constraints contributes to solution optimization, identifying which constraints are flexible, and determining if binding constraints might benefit from resource allocation changes to improve the solution .

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