Question
In: Statistics and Probability
A furniture supplier, Acme Chairs, Inc., manufactures a Basic office chair and a Deluxe office chair....
A furniture supplier, Acme Chairs, Inc., manufactures a Basic office chair and a Deluxe office chair. Each Basic chair costs $25.00 to manufacture, and each Deluxe office chair costs $40.00 to manufacture. Acme Chairs wishes to determine the optimal production quantities per day for each chair model in order to minimize overall total cost.
The production of each chair requires three types of materials: Wood, Primer, and Paint. The amount of material available per day to manufacture the chairs is as follows:
30 units of wood.
600 oz. of primer.
750 oz. of paint.
Each chair requires the materials as shown below:
| Wood (units) |
1.25 |
2.50 |
|
Primer (oz.) |
3.00 |
7.50 |
|
Paint (oz.) |
6.00 |
10.00 |
A. State the Objective function mathematically.
B State the constraints mathematically.
C. Instead, create an Excel Model for this Example.(please give step by step excel instructions)
Use Solver to determine the optimized solution. (Do not solve the problem graphically)
Solutions
orchestra answered 1 year agoRelated Solutions
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Number
of
Number
of
Number of
Product
Setups
Components
Direct Labor Hours
Recliner
5
40
300
Office
chair
8
45
175
Overhead
costs
$80,000
$180,000
Assume a traditional costing system applies the
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a. What is the total amount of overhead costs
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Product information is provided below.
All per unit amounts are based on estimated of 5,000 units of
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Economy
Basic
Deluxe
Sales price (per unit)
$150
$210
$320
Variable selling costs (per unit)
$30
$30
$30
Variable manufacturing costs (per unit)
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Unit
Costs
Regular
Deluxe
Direct
materials
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$105.00
Direct labour ($20 per hour)
10.00
20.00
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Standard
Deluxe
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# Set Ups
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# Components
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information has been compiled:
Number
of Number
of Number
of
Product Setups Components Direct
Labor Hours
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Deluxe 31 20 235
Overhead
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of Number
of Number
of
Product Setups Components Direct
Labor Hours
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