Quality Cabinets produces various cabinets that house entertainment electronics, including…

Quality Cabinets produces various
cabinets that house entertainment electronics, including televisions, video
game equipment, DVRS, and stereo equipment. They manufacture and sell three
models, based on the size of the flat-screen televisions: standard (for 32-inch
TVs), deluxe (for 40-inch TVs), and enhanced (for 50-inch TVs). To produce
these cabinets, various pieces of wood are custom-sized, assembled to form the
cabinets. These structures are then finished and painted in separate
departments. Below are the times (in hours) required in each department for the
various models, as well as
»

Quality Cabinets produces various
cabinets that house entertainment electronics, including televisions, video
game equipment, DVRS, and stereo equipment. They manufacture and sell three
models, based on the size of the flat-screen televisions: standard (for 32-inch
TVs), deluxe (for 40-inch TVs), and enhanced (for 50-inch TVs). To produce
these cabinets, various pieces of wood are custom-sized, assembled to form the
cabinets. These structures are then finished and painted in separate
departments. Below are the times (in hours) required in each department for the
various models, as well as the amount of wood planks needed for each product
and their unit profit margins.

In a typical week there is 250,
300, and 400 hours, respectively, available in each department. Unfortunately,
this week there are only 5000 wood planks available from their local supplier.
In addition, they have orders for at least 100 standard, 75 deluxe, and 40
enhanced cabinets that must be met this week. To meet this demand, management
has authorized the purchase, from a supplier, of assembled cabinets; however,
only standard and deluxe sizes can be purchased. These cabinets only need to be
finished and painted. They take one hour less in the finishing department than
those assembled within the company, and take the same amount of painting time.
The profit margins for these pre-assembled models are now $10 for standard and
$20 for deluxe models. How many of each model should be built and/or purchased
so as to meet demand and maximize profit?

»

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