MAT540 Assignment 1

Please see Course Guide pages 10-12 (Week 8 Assignment 1)

As part of this assignment, you must:

1. Set up a Linear Model based on the below scenario

2. Solve the Linear Model Graphically

3. Solve the Linear Model using excel. A part of your excel spreadsheet must also include a component that involves Sensitivity Analysis and the use of the Shadow Price.

Assignment #1: Manufacturer Problem:

A manufacturer makes wooden desks and tables. Each desk requires 2.5 hours to assemble, 3 hours for buffing, and 1 hour to crate. Each table requires 1 hour to assemble, 3 hours to buff, and 2 hours to crate. The firm can do only up to 20 hours of assembling, 30 hours of buffing, and 16 hours of crating per week. Profit is $3 per desk and $4 per table. The manufacturer wants to show how it can maximize the profit.