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Jones Furniture Company Produces Beds and Desks for College Students  Changing Calls \text { Changing Calls }

Question 42

Essay

Jones Furniture Company produces beds and desks for college students.The production process requires carpentry and varnishing.Each bed requires 6 hours of carpentry and 4 hour of varnishing.Each desk requires 4 hours of carpentry and 8 hours of varnishing.There are 36 hours of carpentry time and 40 hours of varnishing time available.Beds generate $30 of profit and desks generate $40 of profit.Demand for desks is limited so at most 8 will be produced.
How much can the price of Desks drop before it is no longer profitable to produce them? Base your response on the following Analytic Solver Platform sensitivity output.
Let X1 = Number of Beds to produce X2 = Number of Desks to produce
The LP model for the problem is
MAX: 30 X1 + 40 X2
Subject to: 6 X1 + 4 X2 ? 36 carpentry)
4 X1 + 8 X2 ? 40 varnishing)X2 ? 8 demand for X2)
X1,X2 ? 0
 Changing Calls \text { Changing Calls }
 Cell  Name  Final  Value  Reduced  Cost  Objective  Coefficient  Allowable  Increase  Allowable  Decrease $B$4 Number to make: Beds 40303010$C$4 Number to make: Desks 30402020\begin{array}{rrrrrrr}\text { Cell } & \text { Name } & \begin{array}{r}\text { Final } \\\text { Value }\end{array} & \begin{array}{r}\text { Reduced } \\\text { Cost }\end{array} & \begin{array}{r}\text { Objective } \\\text { Coefficient }\end{array} & \begin{array}{r}\text { Allowable } \\\text { Increase }\end{array} & \begin{array}{r}\text { Allowable } \\\text { Decrease }\end{array} \\\hline \$ B \$ 4 & \text { Number to make: Beds } & 4 & 0 & 30 & 30 & 10 \\\$ C \$ 4 & \text { Number to make: Desks } & 3 & 0 & 40 & 20 & 20\end{array}

 Coustraints \text { Coustraints }

 Cell  Name  Final  Value  Shadow  Price  Constraint  R.H. Side  Allowable  Increase  Allowable  Decrease $D$8 Carpentry Used 362.5362416$D$9 Varnishing Used 403.754026.6716$D$10 Desk demand Used 3081 E+305\begin{array}{rrrrrrr}\text { Cell } & \text { Name } & \begin{array}{r}\text { Final } \\\text { Value }\end{array} & \begin{array}{r}\text { Shadow } \\\text { Price }\end{array} & \begin{array}{r}\text { Constraint } \\\text { R.H. Side }\end{array} & \begin{array}{r}\text { Allowable } \\\text { Increase }\end{array} & \begin{array}{r}\text { Allowable } \\\text { Decrease }\end{array} \\\hline \$ \mathrm{D} \$ 8 & \text { Carpentry Used } & 36 & 2.5 & 36 & 24 & 16 \\\$ \mathrm{D} \$ 9 & \text { Varnishing Used } & 40 & 3.75 & 40 & 26.67 & 16 \\\$ \mathrm{D} \$ 10 & \text { Desk demand Used } & 3 & 0 & 8 & 1 \mathrm{~E}+30 & 5\end{array}

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