Problem 5-19

The Oak Works is a family-owned business that makes handcrafted dining room tables and chairs. They
obtain the oak from a local tree farm, which ships them 2,500 pounds of oak each month. Each table uses
50 pounds of oak while each chair uses 25 pounds of oak. The family builds all furniture itself and has
480 hours of labor available each month. Each table or chair requires six hours of labor. Each table nets
Oak Works $400 in profit, while each chair nets $100 in profit. Since chairs are often sold with the tables,
they want to produce at least twice as many chairs as tables.
​ The Oak Works would like to decide how many tables and chairs to produce so as to maximize
profit.
a.​ Formulate and solve a linear programming model for this problem on a spreadsheet by using the
Excel Solver.
b.​ Use Analytic Solver to formulate and solve this model in a spreadsheet.
c.​ Formulate this same model algebraically.

Problem Facts
The Oak Works company has limited resources available for production each month, including
2,500 pounds of oak and 480 hours of labor to divide between their line of finely crafted oak furniture.
Each solid oak table requires 50 pounds of timber and six hours of craftsmanship to complete, while each
oak chair demands 25 pounds of wood and the same six hours of experienced labor. The company earns a
sizable profit of $400 for each table sold and $100 for each chair.
Resources Available:
●​ 2,500 pounds of oak per month.
●​ 480 hours of labor per month.
Resource Requirements Per Unit:
●​ Table: 50 pounds of oak, 6 hours of labor.
●​ Chair: 25 pounds of oak, 6 hours of labor.
Profit Per Unit:
●​ Table: $400
●​ Chair: $100
Production Constraint:
●​ The company must produce at least twice as many chairs as tables.
Discuss the Problems
​ The first problem start with working through the production constraint as they must manufacture
no less than twice as numerous chairs as tables. Considering these factors inhibiting unlimited output, the
next problem is allocating the raw materials and work hours each month to optimize earnings through
manufacturing proportions. The company must allocate oak and labor efficiently, ensuring that the total
oak usage does not exceed 2,500 pounds and the total labor hours do not exceed 480. Another critical
factor is the production ratio, which mandates that the number of chairs produced must be at least twice
the number of tables.

Objective Function: Maximize profit by determining the optimal number of tables (T) and chairs
(C).
Constraints:
●​ Oak Constraints: 50T + 25C ≤ 2500
●​ Labor Constraints: 6T + 6C ≤ 480
●​ Product Ratio Constraint: C ≥ 2T
●​ Non-negativity constraint: T ≥ 0, C ≥ 0
​ Challenges:
●​ The limited availability of oak and labor restricts the number of products that can be
manufactured.
●​ Ensuring the chair-to-table ratio meets the requirement.
●​ Finding an optimal balance between producing high-profit tables and lower-profit chairs
while meeting constraints.
Spreadsheet Modeling

Figure 1.1 Spreadsheet Modeling for Oak Works

Figure 1.2 Formulas for the Spreadsheet Model of Oak Works

​ For this problem, the model we used is linear programming as Linear programming helps in
optimizing a given object under a set of constraints. Through linear programming we were able to achieve
our optimization goal which was to "Maximize profit by determining the optimal number of tables and
chairs".
Step 1: Open excel and create tables with the necessary headers
●​ Chairs and Tables
●​ Profit
●​ Pounds of Oak
●​ Labor hours
 ●​ Units produced
●​ Max Chairs
●​ Used Pounds of Oak
●​ Used Labor Hours
●​ Total Pounds of Oak
●​ Total Labor hours
●​ Total Profit
Step 2: Identify the relevant variables needed for the problem and its corresponding
constraints.
Step 3: Enter the given data.
Step 4: Compute for the used pound of oak with the formula
=SUMPRODUCT(PoundsofOak,UnitsProduced)
Step 5: Compute for the used Labor hours with the formula
=SUMPRODUCT(LaborHours,UnitsProduced).
Step 6: Calculate for total profit with the formula
=SUMPRODUCT(Profit,UnitsProduced)

Figure 1.3 Cell Range for Oak Works

In order to solve for the total profit and to determine how many tables and chairs Oak Works need
to produce so as to maximize profit, the group chose to utilize the Analytical solver extension in Excel.
​ Step 1: Open Analytical Solver Extension in Excel
​ Step 2: Click on the Set Objective and input the Total Profit (H14)
​ Step 3: Input the Change in Variable Cells and Click on the two cells under “Units Produced”
(C14:D14)
​ Step 4: Input your constraints:
​ ​ Constraint 1: Units Produced (C14:D14) = Integer
​ ​ Constraint 2: Units Produced for Chairs (C14) >= Max Chairs (C16)
​ ​ Constraint 3: Used Labor Hours (F11) <= Total Labor Hours (H11)
​ ​ Constraint 4: Used Pounds of Oak (F8) <= Total Pounds of Oak (H8)
​ Step 5: Select “Simplex LP” solving method
​ Step 6: Solve
Algebraic Symbols

Figure 1.5 Algebraic Model for Oak Works

P = Profit
T = number of tables to produce
C = number of chairs to produce

​ For this algebraic model, the group utilized P to represent the Profit of Oak Works with means to
maximize its profits, utilized T to represent the number of tables to produce, and utilized C to represent
the number of chairs to produce. These symbols are used by the group to construct the objective function
and constraints that will provide guidance on determining the production limitations and goals. Moreover,
the symbols used for this model serves as an aid to finding the optimal values for the number of tables to
produce or T, and the number of chairs to produce or C, which will ultimately come to the conclusion of
the highest possible profit.

Algebraic Model
Objective Function (Maximize)
P = $400T + 100C

Subject to satisfying all the following constraints:

The goal of this algebraic model is to determine the optimal number of tables (T) and chairs (C)
to produce each month in order to maximize Oak Works' profit (P). The profit equation is given by P =
400T + 100C , where each table contributes $400 and each chair contributes $100 to the total profit.
However, production is subject to several constraints. First, the total amount of oak used cannot exceed
2,500 pounds, with each table requiring 50 pounds and each chair requiring 25 pounds. Additionally, due
to labor shortages, the total number of hours worked 6 hours for each table and 6 hours for each chair
must not exceed the 480 available work hours per month. Furthermore, a production ratio must be
maintained, stipulating that the number of chairs produced must be at least twice the number of tables.
This ratio could be driven by market demand or sales trends. Lastly, non-negativity constraints are
included to ensure that both the number of tables and chairs produced are realistic and non-negative.

Graphic Model
1.​ Blue Area: 50T + 25C ≤ 2500
-​ This remains the same. The blue region still represents the condition where T and C
satisfy 50T+25C≤ 2500. The line for this inequality is C=100−2T, and the region below
this line represents the values that satisfy this inequality.
2.​ Green Area: 6T + 6C ≤ 480
-​ This updated inequality represents a new line, 6T, + 6C = 480
-​ The slope of this line is -1, and as T increases by 1, C decreases by 1. The green region
now represents all the points that satisfy this new constraint. It will be a less steep line
compared to the previous one, and the region will be under the line C = 80 - T
3.​ Overlap (Blue and Green):
-​ The overlap of the blue and green areas now represents the region where both
50T+25C≤2500 and 6T + 6C <=480 hold true simultaneously. This region is where the
two constraints intersect, and it is the feasible space where both inequalities are satisfied.
 Figure 1.6 Graphic Model for Oak Works

Conclusion

​ In conclusion, with the use of the spreadsheet model and analytical solver, employing linear
programming techniques, the group was able to determine that Oak Works can maximize its profits by
producing 25 tables and 50 chairs. The implementation of this optimal production plan resulted in a
maximum profit attainment without exceeding any resource restrictions including oak supplies and labor
hours in manufacturing. The effectiveness of linear programming became apparent through solving this
problem as it demonstrated how businesses with multiple resource limitations achieve their best possible
outcomes. That said, Oak Works would gain enhanced market awareness through this ability to make
better decisions concerning market conditions as well as resource availability changes.