A furniture company manufacturers desks and chairs. Each desk uses 4 units of wood and each chair uses 3 units of wood. A desk contributes $400 to profit, and a chair contributes $250. Marketing restrictions require that the the number of chairs produced be at least twice the number of desks produced. There are 2000 units of wood available. Use Solver to maximize the company’s profit. Use SolverTable to see what happens to the decision variables and the total profit when the availability of wood varies from 1000 to 3000 in 100-unit increments. Based on your findings, how much would the company be willing to pay for each extra unit of wood over its current 2000 units. How much profit would the company lose if it lost any of its current 2000 units.
| Manufacturing desks and chairs | |||
| Inputs | |||
| Desks | Chairs | ||
| Unit margins | $400 | $250 | |
| Wood usage per unit | 4 | 3 | |
| Decisions | |||
| Desks | Chairs | ||
| Units produced | |||
| Constraint on wood | |||
| Wood used | Wood available | ||
| Constraint on chairs | |||
| Chairs produced | Chairs required | ||
| Objective to maximize | |||
| Profit | |||
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