Maximizing Net Returns in Chair Production & Jane's Weekend Work: Linear Programming Model, Lab Reports of Agricultural engineering

Download Maximizing Net Returns in Chair Production & Jane's Weekend Work: Linear Programming Model and more Lab Reports Agricultural engineering in PDF only on Docsity! AGEC 622- LP Spring 2009 Lab #1 1. A small factory makes three types of chairs- economy, regular, and premium. The factory owner seeks to determine the amount of each chair that should be made so as to maximize net returns. The scarce resources the owner must allocate are 30 hours of lathe capacity and 80 hours of labor. From previous experience, the following information is given per chair made: a. Formulate a linear programming model for the firm. b. Solve the problem using Excel. c. Write down and interpret the optimal values for the: i. Objective function ii. Shadow prices iii. Decision variables iv. Reduced costs 2. Take the model in problem 1 and tell how you might use it making at least 2 runs where you would predict something. In doing this make a short verbal case for why you might want to use the model and what data you would choose to alter. 3. On the weekends Jane enjoys working as a carpenter, making cabinets, chairs, and tables. She sells them at a local shop for a net return of $35 for each cabinet, $25 for each chair, and $43 for each table. Cabinets require 2.5 units of wood and take 3.7 hours of her labor. Chairs require 3 units of wood and 1.5 hours of her labor. Tables require 4 units of wood and 3.5 hours of her labor. If Jane only has 16 hours each weekend to work and is limited by space in her garage to only 20 units of wood per weekend, which combination of chairs and tables will maximize Jane’s net returns?