A Small Lumber Company in the Southeast Produces Two Types

question 14

Essay

A small lumber company in the Southeast produces two types of pine boards used in home construction: 2x4s and 2x6s (dimensions in inches).They are attempting to determine how many of each to produce so as to minimize their costs on a per-minute basis.They have sales commitments to produce four 2x4s and two 2x6s per minute, but they think they shouldn't produce any more than eight 2x6s because of market demand.They are also trying to support the community by employing people.Thus they want to keep at least 12 men employed, but only need 2 men to produce each 2x4 and 1 person to produce each 2x6 per minute.It costs them $.50 to produce 2x4 and $.80 to produce a 2x6 per minute.
a.What is the objective function for this LP problem?
b.What is the constraint for the employment issue, assuming X1 corresponds to 2x4s?
c.What is the optimal solution point for this problem?
d.What is the optimal value of the objective function?

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Definitions:

Unethical

Actions or behaviors that violate moral or professional principles and standards.

Corporate Social Responsibility

The practice of businesses engaging in initiatives that benefit society, beyond their financial interests and legal requirements.

Shareholder Wealth

The overall value of the investments shareholders have in a company, typically measured through the market value of the company's shares.

Stakeholders

Individuals or groups with an interest in or influence over an organization's activities, outcomes, or decisions, including employees, customers, investors, and the community.