CHAIR MODELS

Chair Models Q&A

Q: What is a linear programming model? Help!?

A furniture company has just received an order for 500 chairs from a large retail chain. Each of the 500 chairs requires 1 seat, 1 back and 4 legs. The firm usually makes all seats, backs, and legs in its own factory, but there may not be enough available capacity in Departments A and B to complete this large order on schedule. There are 600 production hours available in Department A and 200 production hours available in Department B. Seats, backs, or legs can be purchased from subcontractors in any required quantities at somewhat higher cost. Seat production requires considerable setup, so the furniture company will hae to pay the seat subcontractor a fixed setup fee of $730 in addition to the $14 per seat price if any seats are subcontracted. There are no fixed setup fees for subcontracting backs or legs. Cost and time data re shown below. For example, each chair back made in the firm's factory will cost $8.00 and will require 0.30 production hours in Department A and 0.15 hours in Department B. Production Data---- Seat: Cost/unit $12.50 Dept A. 0.60 hr Dept B 0.10 hr Back: Cost/unit $8.00 Dept. A 0.30 hr Dept. B 0.15 hr Leg (each): Cost/unit $2.50 Dept. A 0.10 hr Dept. B 0.05 hr Purchase Data------ Seat: Cost/unit $14 Setup Charge $730 Back: Cost/unit $13.50 Setup charge None Leg (each): Cost/ unit: $4.25 Setup charge None The production manager must decide how many pats of each typeshould be made and how many should be purchased in order to minimize the total cost while complting the order on schedule. How do I "formulate a linear programming model" that can be used to solve the manager's problem? I'm not sure where to start...thank you for any help you can give!!!!

A: use the Pearson's chi square test

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