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Geraldine Shawhan is president of Shawhan File Works, a firm that manufactures two types of metal...

Geraldine Shawhan is president of Shawhan File Works, a firm that manufactures two types of metal file cabinets. The demand for her two-drawer model is up to 600 cabinets per week; the demand for a three-drawer cabinet is limited to 400 per week. Shawhan File Works has a weekly operating capacity of 1,300 hours, with the two-drawer cabinet taking 1 hour to produce and the three-drawer cabinet requiring 2 hours. Each two-drawer model sold yields a $10 profit, and the profit for the large model is $15. Shawhan has listed the following goals in order of importance:

Attain a profit as close to $11,000 as possible each week.

Avoid underutilization of the firm’s production capacity.

Sell as many two- and three-drawer cabinets as the demand indicates.

Please illustrate this problem in Excel

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Answer #1

We will solve linear programming model using Excel -> Solver as shown below.

Optimal solution is to produce 600 units of 2-drawer cabinets and 350 units of 3-drawer cabinets.

Total profit to be around $11250.

Please give thumbs up if you like my answer. Thank you!

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