Question 1
AAA Furniture is a furniture manufacturer of desks and chairs. Each desk uses 4 units of wood, and each chair uses 3 units of wood. Each desk sold yields a profit of $40, and each chair sold yields a profit of $25. Marketing restrictions require that the number of chair produced be at least twice the number of desks produced. There are 20 units of wood available. Let X1 and X2 be the number of chairs and desks that AAA Furniture produces.
a Develop the linear programming problem in terms of the production function and constraints, in order to maximise AAA Furniture's total profit.
b Use Excel's Solver to solve the above linear programming problem.
Question 5
The International Shipping & Logistics Department of a university needs to decide which of the two magazines, Containerisation International or Lloyd's Shipping Economist, should be used to advertise its new Bachelor of International Logistics program.
a What quantitative method can be applied to help the Department make the decision? Outline how this method can be applied.
b Explain how a qualitative method can also be applied to help the Department make the decision.