Question

Office2000 produces expensive, quality 2-drawer and 4-drawer filing cabinets from solid oak for major corporations. A 2-drawer model utilizes 2 labor hours to produce and package for a net profit of $75. The 4-drawer model utilizes 3 labor hours to produce and package and nets a profit of $125. Each month Office2000 has 360 labor hours available and can obtain up to 200 2-drawer frames, 200 4-drawer frames, and 400 drawers from its oak supplier. A linear programming model is formulated to maximize monthly profit from the manufacture of filing cabinets at Office2000. MAX 75X1 + 125X2 ST 2X1 + 3X2 ? 360 2X1 + 4X2 ? 400 X1 ? 200 X2 ? 200 Set up the model in Excel and solve for the optimal solution using Solver. In the boxes below, enter the optimal values of X1 (first box) and X2 (second box).

Answer 1

Here X₁ is the quantity of 2-drawer and X₂ is trhe quantity of 4-drawer

The Excel formulation is shown below

The Solver screenshot is given below:

The Solution is given below:

Thus the Maximum Profit is $14000

Optimal value of X₁= 120

Optimal value of X₂= 40