Question 2 An office furniture company produces ergonomie computer workstations on rollers. Each consists of a tubular frame with adjustable shelves for the keyboard, monitor, computer, printer, and other accessories. Three models are made: basic, standard, and luxury. They are sold through the firm's own retail outlets. Manufacture of the workstations consists of five operations: cutting the tubular frame pieces, welding the frames, spray painting the frames, making the shelves, and final assembly of frames, shelves, and rollers. Table 1 lists the labour input required for the various operations, the production capacity for each operation, the costs of the parts and supplies used, and the wholesale price of the units. The labour capacities imply that one worker cuts tubes, while two each weld and assemble, and three make shelves. Welding, shelf-making, and assembly all require a daily setup time, hence the lost hour of production. The spray painting and curing facility has a capacity for 32 frames per day, regardless of which type Table 1 Product Cuttia ribes Welding frames Maria shelves Assembly of an Material COTT Wholesale price 16 min 22.5mm Basic Standard Luxury 543 560 586 5180 36 min 50 min Capacity dny hours 15 hours 23 hours 15 hours These five capacities are technical or physical output restrictions imposed by the current production process and the facilities used. They can only be increased by adding more workers, arranging for overtime, or a change in equipment. They are hard constraints of the production process Marketing considerations dictate that the number of standard units should be at least equal to one third of the number of basic units. In contrast to the live hard conditions above, this condition is the result of a deliberate management policy. It can he changed by a simple management decision. It is thus a soft constraint on the choice of product mix Management would like to know the product mix which uses its current production capacities most effectively, while also meeting the marketing restriction. We shall interpret mest effectively as that use of resources which maximizes profit. Profitis the difference between the revenue generated by the output and all costs incurred. We shall achitrarily set the basic planning period at one day Carsin live role nf the ninduet mix what the varione lune nl the entire 8 hours of each working day, even if he or she may be idle for a fraction of the time. In this example, the only cost items that vary as a function of the product mix are the material cost. Therefore, an appropriate measure of performance is given by the difference between revenues and material costs which we denote as the gross profit as outlined below Type Rereant per unit Material cost Difference perunt Number of mits day $100 Bu 5143 Standard $180 5248 Gross profit per day 100 BASIC 130 STANDED 160 LUXURY BASIC STANDED LUXURY 560 515 5160 Total day GROSSPROF=100 BASIC -120 STANDED - 160 LUXURY 1.Cutting Time constraint: (CUTTING) 16 BASIC + 12 STANDRD + 20 LUXURY 480 2. Welding time constraint (WELDING 25 BASIC + 22.5 STANDRD +36 LUXURY 0 A E 2 Desvantables STANDAD LUXURY 30 13 300 WELDING PAINTING 1 ALBEN Answer the following questions (a-1) using the output please be brief. If there are two possible answers one will suffice. Where necessary a ringe analysis must be shown What is the mal solution in woedmark b) 20 hours of cutting were lost. Evaluate the effect 2 marks An extash painting ww wval evaluate the effects dh Because of sicknen 1 worker 4 hours of shelving was to the effect 2 e) Ir the selling price of Standard went up by 16.00Evaluate the effect? 2 marks What is the situation in the company want to produce Luty Evaluate the effect 2 marks ) Ir the selling price of Basis deurense y $10.00. Eyatuate the effect 2 marks h) is the problem degenerate? Explain! 2 marks Are there altereve optima in this problem! Explain 2 marks 1) What value should be in the lack column that is given by 11?2 mark Microsoft Excel 15.0 Answer Report Worksheet: Solution assignment 1.xlsx 102 lp Report Created: 18/10/2020 13:27:04 Ohjective Cell (Max) Original Cell Name Value SFS5 GROSS PROFIT 0 Final Value 3525.714286 Variable Cells Cell Original Value Final Value $CS4 Integer Name DECISION VARIABLES BASIC DECISION VARIABLES STANDARD DECISION VARIABLES LUXURY 0 15.71428571 Contin SD$4 0 16.28571429 Contin SES4 0 0 Contin Constraints Cell Name Slack $F$II BASIC TO STD MIX 11.04814286 SFS6 CUTTING Cell Value Formula Status Not 11.04814286 SFS11>=SHS11 Binding Not 446.8571429 SFS6 0 A E 2 Desvantables STANDAD LUXURY 30 13 300 WELDING PAINTING 1 ALBEN Answer the following questions (a-1) using the output please be brief. If there are two possible answers one will suffice. Where necessary a ringe analysis must be shown What is the mal solution in woedmark b) 20 hours of cutting were lost. Evaluate the effect 2 marks An extash painting ww wval evaluate the effects dh Because of sicknen 1 worker 4 hours of shelving was to the effect 2 e) Ir the selling price of Standard went up by 16.00Evaluate the effect? 2 marks What is the situation in the company want to produce Luty Evaluate the effect 2 marks ) Ir the selling price of Basis deurense y $10.00. Eyatuate the effect 2 marks h) is the problem degenerate? Explain! 2 marks Are there altereve optima in this problem! Explain 2 marks 1) What value should be in the lack column that is given by 11?2 mark Microsoft Excel 15.0 Answer Report Worksheet: Solution assignment 1.xlsx 102 lp Report Created: 18/10/2020 13:27:04 Ohjective Cell (Max) Original Cell Name Value SFS5 GROSS PROFIT 0 Final Value 3525.714286 Variable Cells Cell Original Value Final Value $CS4 Integer Name DECISION VARIABLES BASIC DECISION VARIABLES STANDARD DECISION VARIABLES LUXURY 0 15.71428571 Contin SD$4 0 16.28571429 Contin SES4 0 0 Contin Constraints Cell Name Slack $F$II BASIC TO STD MIX 11.04814286 SFS6 CUTTING Cell Value Formula Status Not 11.04814286 SFS11>=SHS11 Binding Not 446.8571429 SFS6