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Logan, Ltd. makes two products, tables and chairs, which must be processed through assembly and finishing departments. Each table requires 5 hours to assemble and 3 hours to finish, but each chair requires 2 hours to assemble and 5 hours to finish. Assembly department has 80 hours available, and finishing department can handle up to 90 hours of work. The company wants to see at least 5 chairs produced during the production. The production of chairs should be more than or equal to the production of tables. Each table yields a profit of $8, and each chair can be sold for a profit of $4.
a. Show the feasible region graphically (Draw a graph by using MS WORD).
b. What are the extreme points of the feasible region?
c. Find the optimal solution using the graphical method.
d. Are there any slack values? Are there any surplus values?
e. Compute the shadow prices of each constraint.
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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