Bright furniture factory has two products; table and Chair. Each table sells for Birr 27, uses Birr 10 of raw materials and takes Birr14 of labor & overhead costs. Each chair sells for Birr 21, uses Birr 9 of raw materials, and takes Birr 10 of overhead costs. Each table needs 2 hours finishing and 1 hour carpentry; each chair needs 1 hour finishing and 1 hour carpentry.
Raw materials are unlimited, but only 100 hours of finishing and 80 hours of carpentry are available each week. Demand for Chairs is unlimited; but at most 40 tables can be sold each week. 1) Formulate the problem as Leaner Programing Model (LPM). 2) How many of Tables and Chairs should be made each week to maximize profits? (Show each steps to indicated how you have computed the problem to propose your decision )
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